*  *  *  Mr Chairman and other members of the Committee, I appreciate this opportunity to present the Federal Reserve’s report on monetary policy. The Federal Reserve has been confronting a complex set of challenges in judging the stance of policy that will best contribute to sustaining the strong and long-running expansion of our economy.
The challenges will be no less in coming months as we judge whether ongoing adjustments in supply and demand will be sufficient to prevent distortions that would undermine the economy’s extraordinary performance. For some time now, the growth of aggregate demand has exceeded the expansion of production potential.