To me, it is important that any future policy decisions we may consider in 2019 be consistent with both pillars of our dual mandate. I will also be monitoring closely the incoming data on labor supply and productivity. 3 Not only has aggregate demand growth been robust, but so, too, has been the growth in realized aggregate supply.
To me, these are good illustrations of the benefit of having the specification of the objective of monetary policy a matter for formal and public agreement between government and central bank. It forms a kind of pre-commitment strategy.