But, with wage growth and price inflation declining by a number of measures earlier this year, and productivity evidently still accelerating – thereby keeping inflation in check – we chose to maintain the lower level of the funds rate.
While this stellar noninflationary economic expansion still appears remarkably stress free on the surface, there are developing imbalances that give us pause and raise the question: Do these imbalances place our economic expansion at risk? For the period immediately ahead, inflationary pressures still seem well contained.