Whether further policy action against inflation will be  BIS Review 116/2006  5  required depends on the incoming data and in particular on how these data affect the FOMC's medium-term forecasts of both inflation and output growth. I have focused today on the near-term prospects for the economy and the risks to the economic outlook.
However, in reviewing the economic developments of recent years, one cannot help but be impressed by the dynamism and resilience of the U.S. economy. I have confidence, therefore, that however events play out in the short term, in the longer term the economy will grow at a healthy pace, raising living standards in the process.