- Demand remains very strong, buoyed by healthy household balance sheets
- We still see rapid economic growth
- Recent improvement in labor market has narrowed difference across classes and races
- We think labor market will continue to improve
- The pandemic has pushed people out of the labor market, unclear when they will return
- Bottlenecks have been longer and stronger than anticipated
- Inflation likely to run above 2% goal "well into next year"
- Price increases have broadened
- Wages have also risen briskly
- We expect inflation to fall close to our goal next year
- We will watch carefully to see if economy is moving in line with expectations
- Notes that dots are about 50 bps above Sept forecasts for 2022 year end
