Fourth, I’ll offer several interpretations of the policy action in relation to what I believe are important aspects of the strategy of monetary policy. Finally, I’ll discuss some of the factors that will influence my views of the appropriate course of policy in the months ahead.
The Analytical Framework Let me remind you at the outset of the framework I have been using to explain the challenge facing monetary policy in the current environment of healthy growth and high levels of resource utilization. The risk of higher inflation in this environment has two dimensions.