We are likely to see growth return to around 3 percent through the rest of 2014. Prospects for labor markets will continue to improve, and I expect the unemployment rate will continue to decline, reaching 6.2 percent or lower by the end of 2014.
I also believe that inflation expectations will be relatively stable and that inflation will move up toward our goal of 2 percent over the next year. I expect the housing and construction sectors will continue to recover. But we should not seek to return to the heady days of last decade’s real estate boom.