Another source of uncertainty for the Bank at the present time is in estimating the margin of unused capacity in the economy. If economic activity expands as forecast, the traditional way of measuring these things tells us that the current margin of economic slack should be taken up in the second half of next year.
Economic conditions In order to determine the appropriate monetary policy to promote these goals, the FOMC must monitor economic developments. So, let me turn to an assessment of our economy. As we enter 2014, I think the bottom line is that the economy is on firmer footing than it has been for the past several years.