Starting with the economy, after what at times has been a slow recovery from the financial crisis and the great recession, growth has now picked up. Unemployment has fallen from 10% at its peak in October 2009, to 4.1% now, the lowest level in nearly two decades. The labor market has been strong and my colleagues and I on the Federal Open Market Committee expect it to remain strong.
Inflation has continued to run below the FOMC's 2% objective, but we expect it to move up in coming months and to stabilize around 2% in the medium term. Over the next few years, we will continue to aim for 2% inflation and for a sustained economic expansion with a strong labor market.
As I mentioned, my FOMC colleagues and I believe that as long as the economy continues broadly on its current path, further gradual increases in the federal funds rate will best promote those goals.