In a speech on 'Perspectives on the Jobless Recovery' given on 14 November, Anthony Santomero of the Federal Reserve Bank of Philadelphia said once the current expansion gains a firmer foothold, monetary policy must eventually be moved to a less stimulative and then neutral stance. This will avoid momentum toward accelerating inflation or destabilizing shifts in long-term inflation expectations. In light of significant excess capacity and benign inflation pressures, any policy adjustment need