[ MUSIC ] As I noted on previous occasions, waiting too long to remove accommodation would be unwise. Potentially requiring the FOMC to eventually raise rates rapidly which could risk disrupting financial markets and pushing the economy into recession. Incoming data suggests that labor market conditions continue to strengthen, and inflation is moving up to 2 %, consistent with the Committee's expectations. At our upcoming meetings, the Committee will evaluate whether employment and inflation Are continuing to evolve in line with these expectations, in which case, a further adjustment of the federal funds rate would likely be appropriate. That said, the economic outlook is uncertain. And monetary policy is not on a preset course. FOMC participants will adjust their assessments of the appropriate path for the federal funds rate in response to changes to the economic outlook and associated risks as informed by incoming data. Also changes in fiscal policy or other economic policies could potentially affect the economic outlook. Of course it is too early to know what policy changes will be put in place or healthier economic effects will unfold. While it is not my intention to upon on specific tax or spending proposals, I would point to the importance of improving the pace of longer run economic growth and raising American living standards with policies aimed at improving productivity. [ MUSIC ] [ SOUND ]

Watch Janet Yellen Discuss the U.S. Economic Outlook