• too early to declare victory
• employment ‘nowhere near’ acceptable levels
• support of accommodative Fed policy still required
• appropriate outlook is ‘cautious optimism’
• risks include European debt problems, weak US housing sector, State fiscal pressures
• moderate growth, slower business formation, productivity enhancements are restraining job growth
• inflation currently measured at lower-than-desired rates
• deflation concern has abated, rate of inflation seems to have stabilised
• higher input costs have not translated to broad inflation