The result has been elevated inflation in durable goods—a sector that has experienced an annual inflation rate well below zero over the past quarter century. 1 Labor market conditions are improving but turbulent, and the pandemic continues to threaten not only health and life, but also economic activity. Many other advanced economies are experiencing similarly unusual conditions.
In my comments today, I will focus on the Fed’s efforts to promote our maximum employment and price stability goals amid this upheaval, and suggest how lessons from  1  See, for example, figure 5. -2history and a careful focus on incoming data and the evolving risks offer useful guidance for today’s unique monetary policy challenges.