Fed’s Pianalto Says ‘Gradual’ Economic Recovery to Continue

Federal Reserve Bank of Cleveland President Sandra Pianalto said she expects the U.S. economic expansion to advance further and that the central bank’s current monetary stimulus is appropriate.

“I expect the economy to continue on a gradual recovery pace over the next few years, with annual growth just above 3 percent a year,” Pianalto said today in a speech in Columbus, Ohio. “I believe inflation will be temporarily elevated this year due to developments in oil and food prices, but I expect inflation to fall back below 2 percent in the next couple of years.”