Consumer balance sheets are much improved, and households have regained much of the wealth they lost during the crisis. That gives me additional confidence that the economy is now operating normally and so should monetary policy. As we normalize policy, I believe we should follow four principles.
The Fed should ensure that it has clearly articulated objectives that can be achieved by monetary policy, with price stability as the primary objective. It should pursue its objectives in a systematic, rule-like manner and help the public understand how policy will react systematically to changes in economic conditions.