More specifically, we are getting older, and the size of the working age population is shrinking relative to those over 65. It is widely recognized that this fundamental shift will require major changes in the structure of Social Security and Medicare programs.
An accommodative monetary policy is needed, in my view, to support the ongoing recovery, particularly in the labor market. At the same time, the risks of policy accommodation seem low, as inflation is low and inflation pressures seem quite subdued. These arguments notwithstanding, I realize that some remain unconvinced that the FOMC is pursuing the right course.