Supply constraints are particularly evident in interest-sensitive parts of the economy, such as residential investment and vehicle sales, limiting the scope for additional monetary accommodation to stimulate activity in those sectors. I expect that these developments, however, have for the most part simply postponed activity temporarily and that robust growth will return in the coming months.
All of my remarks today represent my own views and not necessarily those of my colleagues on the Federal Open Market Committee. 1  -2There is evidence in recent weeks that we seem to be moving into a new phase of the economy.