Says it makes sense to raise interest rates gradually, sooner than later
Says US economy is in good shape, headed in right direction
Sees unemployment rate dropping to 4.5 pct over coming year
Sees inflation rising to 2 pct in next year or two
Fed's low inflation target is not well suited to era of persistently low interest rates
Fed should consider raising inflation target, switching to nominal GDP-targeting
Says now is the time for Fed to actively study new policy options