Although economic activity in the travel, leisure, and hospitality sectors has continued to lag the recovery, there have been some bright spots elsewhere. Two that are particularly important for Oklahoma are agriculture and energy. Commodity prices for some crops have increased dramatically in the past few months, particularly soybeans and corn, reflecting higher export demand and some limits on global supply.
In any case, the sequencing of steps and the combination of tools that the Federal Reserve uses as it exits from its currently very accommodative policy stance will depend on economic and financial developments and on our best judgments about how to meet the Federal Reserve’s dual mandate of maximum employment and price stability.