I will review the current economic situation and outlook and then turn to monetary policy. Current Economic Situation and Outlook Since I last testified here in February, the job market has continued to strengthen and inflation has moved up.
In the most recent data, inflation was a little above 2 percent, the level that the Federal Open Market Committee, or FOMC, thinks will best achieve our price stability and employment objectives over the longer run. The latest figure was boosted by a significant increase in gasoline and other energy prices.