It's true that the Federal Reserve faces a lot of political pressure and is unpopular in many circles.

House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.

Although low inflation is generally good, inflation that is too low can pose risks to the economy - especially when the economy is struggling.

The basic prescription for preventing deflation is therefore straightforward, at least in principle: Use monetary and fiscal policy as needed to support aggregate spending, in a manner as nearly consistent as possible with full utilization of economic resources and low and stable inflation. In other words, the best way to get out of trouble is not to get into it in the first place.

The American people are among the most productive in the world. We have the best technologies. We have - great universities. We have entrepreneurs.

The more important reason is that the research itself provides an important long-run perspective on the issues that we face on a day-to-day basis.

Our mission, as set forth by the Congress is a critical one: to preserve price stability, to foster maximum sustainable growth in output and employment, and to promote a stable and efficient financial system that serves all Americans well and fairly.