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

Thank you, Mr. Chairman. The BEA published this morning their so-called final estimate of GDP for the first quarter. Top line came in slightly lower than we had been expecting in the Greenbook—0.7 percent compared with the 1 percent that we had been expecting. There were small misses in a smattering of categories, including equipment and software investment, net exports, and inventories. Our snap reading, though, is that this release will have little, if any, implication for our outlook. What we lost in the first quarter in inventories, for example, we might be inclined to regain in the second quarter in our projection. So we think that our projection for real activity will not change as a consequence of this release. We did get the upward revision to core PCE prices that we had been expecting on the basis of the revision to the PPI for medical services. Core PPI was revised up from 2.2 to 2.4 percent.

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