In addition to the semiannual Outlook Report, the Bank releases interim assessments in July and January, which present the Bank’s revised projections. In the most recent projection released in January 2011, Policy Board members considered it most likely that real GDP in fiscal 2010 would grow 3.3 percent on a year-on-year basis reflecting the rebound from the contraction in the preceding year.
Partly as a consequence, the prices of financial assets seem to embody relatively low expected volatilities and relatively little reward for taking credit risk or for extending the duration of investor portfolios. 1  The views expressed are my own and do not necessarily reflect those of the other members of the Board.