- Notes 'extremely tight' labor market
- Labor supply remains subdued
- Wages rising at fastest pace in many years
- FOMC participants expect labor market to remains strong
- Inflation remains 'well above' goals
- Supply disruptions have been larger and longer-lasting than anticipated
- Higher energy prices are driving up overall inflation
- Latest surge in oil will add additional pressure
- A long expansion is only possible in an environment of price stability
- Participants continue to see inflation risks as weighted to the upside
- No one knows with any certainty where the economy will be a year or more from now
- Trimming balance sheet will play an important role in firming policy. Will make announce at 'a coming meeting'
The Fed is setting up an interesting debate on how quickly to tighten the balance sheet at the next FOMC meeting.