Centrality of the US labor market in Fed’s outlook for policy

Fed's outlook for policy notably considers the US labor market. Significant progress had been made, but still there is a possibility for further improvement. 

Slack would be gone by year end, although if growth were to slow, so too would labor market progress. This focus carried over to inflation, where members needed to see "sufficiently strong" growth and a firmer labor market to be "reasonably confident" on inflation.

Participants noted that the stabilization in the US dollar and oil prices supported the inflation outlook. So if these once again were to move in a more disinflationary direction, Fed officials may take notice. The majority still seem willing to put more weight on the improvement in the labor market,says Bank of America.