The current data suggest economic strength is fairly broad based, as evidenced by recent indicators and the optimism expressed by firms in both the manufacturing and service sectors. As for inflation, recent readings have moved a bit higher, mitigating somewhat the concerns that low inflation will persist or decline further.
We have ample monetary accommodation in the economy to ensure that we will be able to achieve our 2 percent target over time. It is important, however, that we continue to reinforce our commitment to that goal so that inflation expectations remain well anchored near our target. At the meeting last week, the FOMC released its latest Summary of Economic Projections (SEP).