Information received since the Federal Open Market Committee met in October indicates that economic activity is expanding at a moderate pace. Labor market conditions have shown further improvement; the unemployment rate has declined but remains elevated. Household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months. Fiscal policy is restraining economic growth, although the extent of restraint may be diminishing. Inflation has been running below the Committee’s longer-run objective, but longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic growth will pick up from its recent pace and the unemployment rate will gradually decline toward levels the Committee judges consistent with its dual mandate. The Committee sees the risks to the outlook for the economy and the labor market as having become more nearly balanced. The Committee recognizes that inflation persistently below its 2 percent objective could pose risks to economic performance, and it is monitoring inflation developments carefully for evidence that inflation will move back toward its objective over the medium term.

It is great to see that you are enjoying the Prospect website.

You have now reached your allowance of 3 free articles in the last 30 days.
Don’t worry—to get another 7 articles absolutely free, just enter your email address in the box below.

You are in complete control of which 7 articles you choose to read. Register now to enjoy more of the finest writing on politics, economics, literature, the arts, philosophy and science.

When you register, we’ll also send you our free e-book—The past in perspective—which considers how reflecting on the past can give great insight into the present AND we’ll send you our free weekly newsletter. (If you prefer not to receive the newsletter you can unsubscribe at any time).

Email

Prospect takes your privacy seriously. We promise never to rent or sell your e-mail address to any third party.
You can unsubscribe from the Prospect e-mail newsletter at any time.