According to Fed Vice Chairman Randall Cowles, the regulator should start to raise rates, as there are risks that inflation will continue to remain above 2% for a longer period than expected. This was the view he expressed during his last speech before he left office. In Cowles' estimation, the Fed's decision not to cut back on economic stimulus for much of the year was correct, because it was assumed that the price increase was temporary. By now, however, it has become clear that this policy is no longer appropriate. Demand has risen substantially, preparing to exceed pre-crisis levels, and it is likely that the soft monetary policy of the last two years has contributed to this. Now it is necessary to promptly restrain demand by raising rates, which will restore the balance between it and supply, says Coarles.