In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months.
Our decisions always depend on the degree to which incoming data continues to confirm the [Fed’s] outlook.
While economic growth has not been rapid, it has been sufficient to generate further improvement in the labor market.
The [Fed] expects moderate growth in real gross domestic product, additional strengthening in the labor market, and inflation rising to 2% over the next few years. Based on this economic outlook, the [Fed] continues to anticipate gradual increases in the federal funds rate will be appropriate over time.