This is why I believe that the Federal Reserve must remain vigilant on inflation but give appropriate attention to keeping demand from falling below supply as well. What does this all mean for the inflation outlook? At present, labor and product markets appear to be in reasonable balance.
The attainment of industrial competitiveness is also the key to the achievement of overall national competitiveness where a nation is able to sustain high rates of economic growth while at the same time maintaining and expanding the real incomes of its people over the long term.