Balanced Risks Going Forward When I arrived at the Board in late June of last year, the risks appeared to be one-sided. The economy was near capacity and growing above trend. There was a clear risk of overheating, and monetary policy was poised to tighten if necessary.
But the forecast was that growth would slow toward trend and, given how well behaved inflation remained, we believed we could afford to be patient and give economic growth a chance to moderate and, so far at least, that patience appears to have been justified.