The concentration of oil reserves in politically volatile areas of the world is an ongoing concern. But that concern and others, one hopes, will be addressed in a manner that, to the greatest extent possible, does not distort or stifle the meaningful functioning of our markets.
In doing so, we give the economy the time to tap its full potential. This steady-hand approach of monetary policy should also pay off in the future. For one, it helps ensure that when we start normalizing we will be able to do so in a durable way, meaning in an economy where the nominal and real side are sufficiently strong.