Federal Reserve Balkin noted that the outlook for monetary policy remains in a delicate balance, given the conflicting pressures posed by rising unemployment and persistently high inflation. He explained that last year’s 75-basis-point easing means interest rates are now within the range of the so-called “neutral rate,” which he likened to purchasing insurance.Balkin noted, “Looking ahead, policy will require fine-tuning to balance the progress we’ve made across all aspects of our dual mandate.” Although the unemployment rate remains low by historical standards, policymakers are focusing on both aspects of their dual mandate, hoping to promote employment while keeping inflation in check.Bargin said, “With hiring at low levels, no one wants to see the labor market deteriorate further; and with inflation having deviated from target for nearly five years, no one wants high inflation expectations to become entrenched. It’s a delicate balance.”He expects tax cuts and deregulation to boost economic growth this year, and with the government shutdown over, the resumption of official data releases means policymakers will have a clearer picture of the economy in the coming months.