Economic prospects for the United States are importantly influenced by the course of the world economy, and, by the same token, prosperity around the globe depends to a significant extent on a strong U.S. economy. In order for the Federal Reserve to fulfill its dual mandate of price stability and maximum employment, we must take account of these international linkages.
Last fall, the Committee issued a detailed statement concerning its plans for policy normalization and, over the past few months, we have announced a number of additional details regarding the approach the Committee intends to use when it decides to raise the target range for the federal funds rate.