Back then, FOMC participants were forecasting unemployment rates around 7–3/4 percent and 7 percent for year-end 2013 and 2014, respectively, in our Summary of Economic Projections; as of the June 2013 round, these forecasts have been revised down roughly ½ percentage point each. While it is difficult to determine precisely, I believe that our asset purchases since September have supported this improvement.
For example, some of the brightest spots in recent months have been sectors that traditionally respond to monetary accommodation, such as housing and autos. Although asset purchases also bring with them various costs and risks – and I have been particularly concerned about risks relating to financial stability – thus far I would judge that they have passed the cost-benefit test.