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

All right. Okay. Scratch it. Paragraph 1 is the same. That’s simple. Paragraph 2 is the same, including the additional sentence about financial markets, no longer bolded. Paragraph 3, President Stern was right about “quickly.” Why don’t we say “appreciably”? Now, a lot of people have talked about inflation targets. I think we should look at that very seriously. Today is not the day to do it. Maybe that should be introduced simultaneously with concerns about deflation. I propose that we strike the bracketed material but put the word “further” after “moderate”: “The Committee expects inflation to moderate further in coming quarters.” The fourth paragraph as is—most people were okay with the conditionality there. In the fifth paragraph, strike “continue to”: “The focus of the Committee’s policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve’s balance sheet at a high level.” You know, I get the sense from the Committee that they will entertain purchases of Treasury securities in the next quarter or so. In order not to jerk the market around too much, I think we should therefore mention it and leave it where it is. So the only change in paragraph 5 that I’m proposing is in the first sentence.

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