However, New South Wales and Victoria have been less affected by those pressures and so low interest rates and the lower exchange rate have led to an improvement in economic conditions in those states.
In conclusion, Mr. Chairman, despite some of the risks that I have highlighted, the U.S. economy seems to be on a reasonably firm footing, and underlying inflation remains contained. Accordingly, the Federal Open Market Committee in its May meeting reaffirmed that it “... believes that policy accommodation can be removed at a pace that is likely to be measured.