Key quotes (via Reuters)
- “A lot to like” about current state of economy, though expects growth to slow.
- Does not expect surge in investment, and likely cooling of recent “torrid” pace of consumer spending.
- Does not address risk of yield curve inversion.
- Hard to judge risk of overheating in ‘real time,’ but feels loss of control of inflation is not something Fed should risk.
- Risk management should consider that unemployment below normal for an extended period is a ‘symptom’ of overheating.