• But retails sales mixed, headwinds from Europe, slowing global economy
• Hopes Q4 strength will continue; not ready to declare economy has entered stronger stage
• Continues to review asset holdings; if conditions warrant, will take further steps (QE3); Bond purchases on the table
• Policy has been very accommodative, two rounds of QE, extended period of low rates through 2014, still doing operation twist
• May be a case for additional policy action
• Labor market still obviously quite flat
• Ability to forecast 3-4 years out “very limited”