The strongEconomicstrong Outlook” - Federal Reserve Bank.pdfVIP

* EMBARGOED UNTIL Tuesday, January 7, 2014 at 8:40 AM Eastern Time OR UPON DELIVERY * “The Economic Outlook” Eric S. Rosengren President Chief Executive Officer Federal Reserve Bank of Boston Remarks at the “Economic Summit Outlook 2014” conference, hosted by the Connecticut Business Industry Association and the MetroHartford Alliance Hartford, Connecticut January 7, 2014 Good morning. It is a pleasure to once again participate in your economic summit and outlook event. I have had the opportunity to speak at your event during the depths of the recession, during the extended tepid phase of the slow recovery, and now when we hope the recovery is gaining traction – hopefully growing faster than its so-called “potential,” which would mean a more rapid return to full employment and to the Federal Reserve’s 2 percent inflation target. 1 * EMBARGOED UNTIL Tuesday, January 7, 2014 at 8:40 AM Eastern Time OR UPON DELIVERY * As always, the views I express today are my own, not necessarily those of my colleagues on the Board of Governors or the Federal Open Market Committee (FOMC). All of us who follow the economy have been waiting for the drag from fiscal austerity to wane, for consumers to regain confidence and increase demand, and for the housing market to solidify its nascent recovery. These represent the underlying drivers in most forecasts that expect 3 percent growth beginning this year – a view I share. Three percent GDP growth is also consistent with stronger employment growth and declines in the unemployment rate – which would continue a pattern of improvement that we have been seeing of late. Today I will briefly summar