The Uncertainty of Monetary Policy

The U.S. economy slowed significantly last year and recent indicators suggest that economic activity has continued to expand at a modest pace. Although growth in consumer spending has picked up this year, activity in the housing sector remains weak,. Their interest rates and slower output growth also appear to be weighing on business fixed investment. Committee participants generally expect subdued growth to continue. And I will have more to say about monetary policy after briefly reviewing economic developments.