History suggests that the Fed tends to be behind the curve when it comes time to tighten monetary policy, and in the current environment, that delay could prove to be more costly than when reserves are in limited supply. Thus, it’s a matter of our will rather than our ability.
Conclusion In summary, I believe that the economy is continuing to improve at a moderate pace. We are likely to see growth of around 3 percent in 2014. Prospects for labor markets will continue to improve gradually, and I expect the unemployment rate will continue its decline to 6.2 percent by the end of 2014.