• Employment growth has been surprisingly strong reflecting continued demand increases in labor supply
• past policy rate increases are working their way through the economy
• we view risks around our inflation forecast to be roughly balanced, but are more concerned about the upside risks
• forecasts for positive but weak growth in final three quarters of this year is something most people would call a “soft landing”
• We are guided by inflation and achieving inflation mandate.
• Labor market is important to see where inflation is going
• We need weak growth as demand is running too strong
• Probably need to see unemployment rate move up to slow demand