The public has shown confidence that any increases in inflation will be temporary and that, in the long run, inflation will remain low.

When prices are stable, people can hold money for transactions and other purposes without having to worry that inflation will eat away at the real value of their money balances.

Some influential voices of the time argued that by accepting higher inflation, policy-makers could bring about a permanently lower rate of unemployment.

I see inflation as remaining well-contained going forward.

Middle-income living standards, and poverty for that matter, are best addressed through employment growth. By maintaining low inflation and low expectations of inflation, you can create new employment.

In any case, the Federal Reserve will continue to monitor this sector closely.