And although the unemployment rate has declined notably since its peak in 2010, it remains well above our estimate of a longer-run, more normal level. I expect that inflation will return gradually to our 2 percent objective, and that we will continue to make progress in reducing unemployment. In the meantime, the case for continued support for our economy from monetary policy remains strong.
If so, the possibility of bringing about global rebalancing through exchange rate adjustment by itself may not be very encouraging. No doubt exchange rate would have an important role to play in global rebalancing, but the issue is its relationship with other components of the whole package like saving–investment, fiscal deficit, raising investment, structural reforms and domestic output as well as employment.