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

Thank you, Mr. Chairman. Let me just say briefly that I completely support the basic framework that you laid out at the beginning, and I think you gave an excellent description of the risks that are ahead for us, the challenges we face, and the basic strategy we have to adopt. The dominant imperative for monetary policy now is to get rates down to the point at which we are providing a substantial degree of insurance against the risk of a very adverse growth outcome and a more damaging financial crisis. This is going to require substantial further policy action, and we are better off getting there sooner. I think there is more risk to us now in gradualism than in force. Of course, inflation has accelerated, but I think it is very important that inflation expectations have moved down since December, despite the move in headline and core and despite a very substantial downward move in the expected path of the fed funds rate. Other than that, I would just reinforce the basic framework you presented. I would take a fair amount of comfort from the fact that I hear a lot of agreement around the room both on your diagnosis of what is happening and in a general recognition of the extent of deterioration in the outlook and the extent of the increase in terms of the risks to the outlook. That gives us a better basis for a pretty solid consensus in the Committee on the outlook ahead. Thanks.

Keyboard shortcuts

j previous speech k next speech