Charles Evans, Speech: What’s Up with the Economy and Monetary Policy? 

“That said, as I noted earlier, since last summer inflation has broadened out to a wide range of goods and services. This is a signal of more general pressure from aggregate demand on today’s impinged supply. If monetary policy did not respond to these broader pressures, we would see higher inflation become embedded in inflation expectations, and we would have even harder work to do to rein it in.”

“So monetary policy must shift to removing accommodation in a timely fashion, which is what you’ve seen in the latest actions by and communications from the FOMC. Last week, the FOMC announced its decision to raise the federal funds rate target by 25 basis points to a range of 1/4 to 1/2 percent.4 Furthermore, we indicated we will begin reducing the size of our balance sheet at a coming meeting.”