This is a clear signal of the strength of domestic economic activity. Looking ahead, our central forecasts assume that the UK parliament will ratify a withdrawal agreement and that a transition period will come into effect until the end of 2020. Based on this key assumption, the outlook for the Irish economy over the coming years remains broadly positive.
In addition, strong institutions should be positioned to weather any necessary changes in short-term interest rates as policy is adjusted. Finally, there is the role that monetary policy plays in reacting to these imbalances and their inevitable unwinding. The Federal Reserve’s mandate is to keep inflation low and stable and to promote full resource utilization, with the economy expanding at its maximum sustainable rate.