says strong labor market risks overheating U.S.economy

Financial conditions have become more favourable in recent months even as fed tightened

Sees U.S. inflation reaching 2-pct goal next year

Fed needs to raise rates to keep economy expanding as long as possible

Most of recent slowdown in U.S. inflation due to one-off factors

U.S. unemployment falling further, remaining a little above 4 pct through next year