other issue i get asked about is the normalization of the balance sheet. when we first announced our plans in june 2017, i was poised to expound on them in great detail. 4 but when i raised the topic i was sorely disappointed to be met with glazed eyes and general indifference. sadly, nobody seemed to care! now that ’ s changed, and i ’ m getting more interest on this topic. it ’ s important to remember why the fed took unconventional monetary policy actions in the first place. large - scale asset purchases, forward guidance on the future path of interest rates, and seven years where the federal funds rate hovered close to zero, were all measures necessary for the full recovery from the great recession. 3 / 4 bis central bankers'speeches a decade later and the fomc has slowly but surely been moving monetary policy “ back to normal. ” we ’ ve moved interest rates closer to neutral, scaled back on forward guidance, and are over a year into the process of winding down the balance sheet. 5 our goals throughout the policy normalization process have been twofold. first and foremost, to support a strong, sustainable expansion of the economy. second, to do this in a predictable and transparent way that creates as little disruption as possible. 6 so far, this plan has worked very well, with the economic expansion nearing record duration. but it is important to stress that if circumstances change, i will reassess our choices regarding monetary policy, including the path of balance sheet normalization. data dependence applies to all that we do. and, as always, if the outlook deteriorates in a material way, we stand prepared to deploy all our policy tools as appropriate in support of the economy. conclusion i ’ d like to conclude where i began, with the dual mandate. there ’ s sometimes a view that fed policymakers are fixated on two data points : inflation and employment. and the reason is that ’ s how we ’ re judged by congress at doing our job. but underpinning these is a strong economy, and ultimately that ’ s what we ’ re always using monetary policy to support. so, as the year unfolds i ’ ve got my eyes wide open, looking at the data and listening to experience — whether it ’ s coming from household surveys, market indicators, or from leaders in my district. the economy is strong, the outlook is healthy, and my number one priority is using monetary policy to keep it that way. in short

jerome h powell : welcoming remarks remarks by mr jerome h powell, chairman of the board of governors of the federal reserve system, at the ceremonial swearing - in, federal reserve board, washington dc, 13 february 2018. * * * it is both humbling and a great privilege to be standing here today. 1 i am particularly honored by the trust and faith that the president has placed in me and by the senate ’ s quick action in confirming me. there is no greater honor than public service, as randy, lael and all of our colleagues here at the fed would agree. the congress has assigned the federal reserve the goals of stable prices and maximum employment. price stability means that businesses and households can make important decisions without concern for high or volatile inflation. maximum employment means that those who want a job either have one or can find one reasonably quickly. we also have important responsibilities for the stability of the financial system and for the regulation and supervision of financial institutions, including our largest banks. through regulation that is both effective and efficient, we seek to ensure that credit, which is vital for a healthy economy, will be available to families and businesses throughout the business cycle, so they can invest in a brighter future. these are awesome responsibilities, and the congress has wisely entrusted us with an important degree of independence so that we can pursue our monetary policy goals without concern for short - term political pressures. as a public institution, we must be transparent about our actions so that the public, through its elected representatives, can hold us accountable. over the past 25 years, the fed has been a leader among central banks in improving transparency. today, we are open and accountable. we strive to explain our actions in a way that enhances the public ’ s understanding of our goals and methods. we will continue to pursue ways to improve transparency both in monetary policy and in regulation. when i joined the board of governors in 2012, unemployment was 8. 2 percent. many millions of americans were still suffering from the ravages of the crisis. since then, monetary policy has continued to support a full recovery in labor markets and a return to our inflation target ; we have made great progress in moving much closer to those statutory objectives. in addition, the financial system is incomparably stronger and safer, with much higher capital and liquidity, better risk management, and other improvements. much credit for these results should go to chairman bernanke and chair yellen. i am grateful for their leadership and for their