The US economy is strong, unemployment is near 50-year lows, inflation is roughly at the 2% objective and the baseline outlook of forecasters inside and outside the Fed is for more of the same, Fed Chair Powell said during a speech at the National Association for Business Economics.

The Fed Chair added that from the standpoint of contingency planning, the course is clear: conduct policy consistent with the FOMC’s symmetric 2% inflation objective, and stand ready to act if expectations drift materially up or down, signalling the Fed will likely continue to raise rates gradually.