. bis central bankers ’ speeches result, for the first time during this recovery, both unemployment and underemployment among recent college graduates has generally been falling. this means that, not only has it become easier to find a job upon graduation, but more college graduates are taking jobs that better utilize their degrees. in addition, starting salaries for recent college graduates have been increasing for the past couple of years, reflecting the growing demand for their skills in a tighter job market. to conclude, while there are economic challenges facing both the nation and the region, i am optimistic that we will continue to make progress on both fronts over the next few years. achieving our dual mandate of maximum sustainable employment and price stability will help those who will graduate soon to achieve their own aspirations. thank you for your kind attention. i would be happy to take some questions. bis central bankers ’ speeches

modestly since mid - february, the levels of many of these measures remain quite low. bis central bankers ’ speeches now, as i have noted, the low level of market - based inflation compensation probably reflects factors besides inflation expectations, in particular lower term premiums. still, it would be prudent to consider the possibility that longer - term inflation expectations of market participants may have declined somewhat. even after a rise in its most recent reading, the median of the three - year inflation expectations from the new york fed ’ s survey of consumer expectations remains near its lowest reading over its short history. renewed declines in survey measures would be worrisome. however, at this point, my conclusion is that inflation expectations have not become unanchored. in sum, i anticipate that the combination of decreasing resource slack and anchored longerterm inflation expectations will help push inflation up to our 2 percent objective over the medium term. the recent rise in inflation and in measures of inflation expectations have increased my confidence around this outlook compared to earlier in the year, but it is still possible that the return of inflation to our objective could take longer than i anticipate. the forecast that i have just described is my best assessment of how the u. s. economy will evolve this year. as always, there is uncertainty and risk relative to this forecast, which also needs to be taken into consideration in assessing the implications of the outlook for monetary policy. i see the uncertainties around my forecast to be somewhat greater than usual. this assessment reflects the divergent economic signals i highlighted earlier. in addition, the factors behind the financial turbulence we saw earlier this year do not yet appear to be resolved fully. although the downside risks have diminished since earlier in the year, i still judge the balance of risks to my inflation and growth outlooks to be tilted slightly to the downside. the low levels of energy and commodity prices may signal more persistent disinflationary pressures than i currently anticipate, while renewed tightening of financial market conditions could have a greater negative impact on the u. s. economy. also, there is significant uncertainty about economic growth prospects abroad and how this will affect the u. s. economic outlook. i continue to monitor global economic and financial market developments closely to assess their implications for the outlook. given my outlook and risk assessment, i judge that a cautious and gradual approach to policy normalization is appropriate. moreover, caution is also called for because of our limited ability to reduce the