through the rest of the year. in the near term, there is considerable uncertainty about the outlook, particularly because the multiplier effects from fiscal drag and sequestration are still unclear. this uncertainty should gradually decline – for better or for worse – over the coming months, as the sequester ’ s impact takes hold and more economic data come in, giving us a clearer picture of the forward momentum of the economy. inflation, as measured by the personal consumption expenditure deflator, is currently well below the federal reserve ’ s objective of 2 percent. there is substantial slack in the labor market and in the markets for goods and services, and underlying measures of inflation are subdued. moreover, peoples ’ expectations of inflation remain well anchored at levels consistent with our 2 percent longer - run objective. thus, i conclude that the risk that inflation could significantly exceed our 2 percent objective is quite low over the next few years, even if the economy were to strengthen considerably. bis central bankers ’ speeches with inflation well below its longer - run goal and high unemployment, the fomc decided at its march meeting to maintain a “ highly accommodative ” policy stance : a federal funds rate in a range of 0 to 25 basis points with forward guidance based on economic thresholds. moreover, to support a stronger economic recovery, the fomc is purchasing long - term treasury securities at a rate of $ 45 billion per month and agency mortgage - backed securities ( mbs ) at a rate of $ 40 billion per month, and will continue purchasing assets until it sees substantial improvement in the outlook for the labor market, conditional on ongoing assessment of benefits and costs. combined, these actions are intended to ease financial conditions and thereby help to establish a self - sustaining economic expansion. as i stated in my recent economic club speech, the benefits of our asset purchases – as reflected in improving financial conditions and the quickening pace of interest - sensitive spending such as that on consumer durable goods, housing, and capital goods – exceeds the costs. furthermore, the labor market outlook has yet to show substantial improvement. consequently, i see the current pace of asset purchases as appropriate. at some point, i expect that i will see sufficient evidence of improved economic momentum to lead me to favor gradually dialing back the pace of asset purchases. of course, any subsequent bad news could lead me to favor dialing them back up again. as chairman bernanke said in his press conference following the march fomc meeting “ when

central bankers'speeches priority. we have come a long way, but there ’ s no doubt we still have far to go. and this is a journey without a final destination. when someone tells me “ we ’ re done, ” is when i know we have the furthest to go. it ’ s also a journey that is so much easier when we do not walk alone. partners like open finance are crucial to our progress. once again, i ’ d like to thank you for inviting me to open today ’ s forum. i know it ’ s going to be a productive and insightful day, and one full of the conversations we all need to be having more frequently. lgbt demographic data interactive. los angeles, ca : the williams institute, ucla school of law, january 2019. 2 james, sandy e., jody l. herman, susan rankin, mara keisling, lisa mottet, and ma ’ ayan anafi. the report of the 2015 u. s. transgender survey. washington, dc : national center for transgender equality, chap. 9, 2016. 3 human rights campaign foundation, a workplace divided : understanding the climate for lgbtq workers nationwide, june 2018. 4 see for example : hewlett, sylvia ann, and karen sumberg, for lgbt workers, being ‘ out ’ brings advantages, harvard business review, july - august, 2011 ; and hunt, vivian, and lareina yee, sara prince, and sundiatu dixon - fyle, delivering through diversity, mckinsey & company, january 2018. 3 / 3 bis central bankers'speeches