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

Thank you, Mr. Chairman. I also support the policy action in alternative B. I have some of the same concerns that President Lacker and President Plosser, and also President Yellen in her letter, raised about the increasing difficulty in characterizing inflation without having a clear sense of the Committee’s longer-term objective on inflation. I also mentioned yesterday that I have some concerns about claiming that inflation has moderated at the same time that we see the headline measure rising. I find this to be a real problem, and I therefore like the suggestion that President Fisher made. However, I am concerned about introducing yet another concept or another measure of inflation in our statement. I hope that through the minutes we will be able to raise our concern about the headline measure staying stubbornly high. But without further communication, introducing yet another concept, or another measure of inflation, in our statement is going to confuse markets. So I support making as little change as we can to the statement, and I am comfortable with the way the most recent alternative B is presented—although I can also support Governor Kohn’s suggestion about the word “pressure.” So I support alternative B, with some of the minor changes that Governor Kohn has made. Thank you.

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