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

I agree with what you’re saying about the important part, but it is nevertheless the case that—as President Yellen pointed out—if we wanted to, we could raise the funds rate if we put on enough pressure. Therefore, in an important sense a decision is being made here to end this particular policy approach and to move clearly to another one with the words “the focus of the Committee’s policies going forward will be” and that is described in a lengthy paragraph. I am just so concerned about what will happen if we say we’re not going to target it. What does that mean? Is it going to be 5 percent tomorrow? I just fear the confusion. President Hoenig.

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