• We’ll see how the data unfolds before we decide on further action (aha, QEII not a done deal then)
• Doesn’t see risk of an outbreak of deflation as very high at all
• Unemployment rate to decline only slowly in the year ahead
• Preferred inflation indicator is headline PCE, would like to see it at 1.5%
• Quite possible for inflation to run at 1-1.5% for quite some time without slipping into deflation