Conclusion To sum up, I expect continued moderate recovery in 2012. My forecast is for the unemployment rate to gradually (and perhaps fitfully) move lower and for inflation to settle over coming quarters at or below levels consistent with the Federal Reserve’s dual mandate. In this environment, I believe that the current stance of monetary policy is appropriate.
4  14  See Board of Governors of the Federal Reserve System (2012), “The U.S. Housing Market: Current Conditions and Policy Considerations (PDF),” white paper (Washington: Board of Governors of the Federal Reserve System, January).