We would also need to maintain the balance of all the ingredients at the right “temperature” if the outcome is to be right. After all, a dish, if it is overdone or half done, is not going to be edible.
The Federal Reserve will need to be alert to signs of higher inflation, and be ready to respond in order to fulfill its commitment to maintain price stability as a necessary condition for maximum sustainable economic growth. Household financial conditions Before I turn to the business sector, let me spend a few minutes on the financial condition of the household sector.