I believe there are several steps the Federal Reserve can take to ensure a successful exit from this period of extraordinary accommodation, including taking a page out of the Bank of England’s book by announcing an explicit numerical goal for inflation.
As always, my remarks reflect my own views and do not necessarily represent the views of the Federal Reserve Board or my colleagues on the Federal Open Market Committee. Economic outlook Let me begin with an update on the U.S. economy. We are nearly two years into a moderate, sustained recovery from financial crisis and the worst economic downturn since the Great Depression.