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

Thank you, Mr. Chairman. I support alternative B, and I also support the slight revision in the wording that Governor Kohn recommended. One thing that I worry about and that I hope we can make clear in the minutes—clearly, we couldn’t do it in the statement—is that we have been in an unusual period. If you look at Greenbook Part 1, the evolution of the staff forecast, the staff forecast for both ’07 and ’08 has changed remarkably little since last September. There has been a 0.1, 0.2, or 0.3 here, but very, very little change. Ordinarily over this span of time you get some information that changes your outlook in some significant way. I would hate to see us encourage the market to think that our projected path of 5¼ percent for the fed funds rate is carved in stone. We need the market to respond to incoming data, as we will have to do when we have some data that really move us off dead center. So I hope that we would emphasize—and it has sort of drifted into insignificance here—that “future policy adjustments will depend on the evolution of the outlook.” I think it is very important that the market understands that. It gets into the broader discussion of communications, but I hope the minutes will emphasize the importance of that part of our statement. Thank you.

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