- 13 Right now, most measures of the health and strength of the labor market look as favorable as they have in many decades. Inflation will probably run a bit below our objective for a time due to declines in energy prices, but those effects are likely to prove transitory.
Core inflation, which is often a reliable indicator of where inflation is headed over time, is quite close to 2 percent. Despite this favorable picture, we have seen some cross-currents in recent months.