Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

Yes, thank you. Like others, I see the circumstances as requiring the most action we can take. Therefore, I would favor alternative A somewhat over alternative B, but I could live with either. I think that alternative A has the advantage, which President Bullard described and others have referred to, that it does signal a significant change in what we’re doing and draws attention to it. If anything, it probably provokes more dialogue with us as a central bank, which I think at this point is a good thing.

Turning to the next paragraph, I’m a bit concerned that inflation is, in fact, moderating very quickly. This morning’s number for the total CPI is 1.1 percent. That would lead me to ask whether we are expecting inflation to moderate or are, in fact, seeing inflation moderating. This point is similar to President Stern’s. That would also lead me to leave in the bracketed point about the future and the concern there because I think it’s better if we put it on the table than have people say, “Don’t they see that as a problem?” To that end, I also want to endorse the kind of broad strategy statement that President Lockhart put forward. I actually came into the meeting with a very similar sentence from my staff, really talking about what our goal is. I think it does help to set the stage for what follows here, and this was a focus on improving conditions in financial markets or financial intermediation and ensuring a recovery in output and maintaining low inflation.

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