We make our decisions after studying the data—lots of data. We look at everything from food and gas prices to retail sales and inventories, from labor costs and employment figures to semiconductor inventories and shipping expenses, and from the demand for goods and services to readings on public health. And we consider more than just numbers on spreadsheets and charts. We also regularly hear 1/4  BIS central bankers' speeches  from business and community leaders who tell us firsthand what is happening in the economy. This occurs both through regular meetings with our Boards of Directors and advisory groups, as well as in ongoing discussions with local leaders. That is why it’s so important for me to make trips like this one—even virtually—so I can meet with leaders to hear their perspectives. For example, earlier today I spoke with officials at the Port Newark–Elizabeth Marine Terminal about supply chains and logistics. And yesterday, I met with groups in North Jersey who are working to bridge the gap in health outcomes and housing—two critically important issues that can affect economic mobility. Despite the disruptions from COVID-19, the overall economy has shown remarkable strength and resilience over the past year. To put this in perspective, the onset of the pandemic in 2020 caused the sharpest U.S. economic contraction since World War II. Since then, we have seen a remarkable turnaround. The economy, measured by real gross domestic product, or GDP, grew about 5-1/2 percent over the course of last year, the fastest pace of growth since 1984.
As we work to help restore balance to the economy and bring down inflation, our actions will always be driven by the data, and we will remain focused on achieving maximum employment and price stability. 1 Board of Governors of the Federal Reserve System, Statement on Longer-Run Goals and Monetary Policy  Strategy, as adopted effective January 24, 2012. 2 See Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC Statement, November  3, 2021; Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC Statement, December 15, 2021; and Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC Statement, January 26, 2022. 3 Board of Governors of the Federal Reserve System, Principles for Reducing the Size of the Federal Reserve's  Balance Sheet, January 26, 2022. 4/4  BIS central bankers' speeches