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

Thank you, Mr. Chairman. I, too, favor alternative B and the current policy stance. My interpretation of the discussion around the table yesterday is that we see encouraging signs that the current policy appears to be producing the desired directional effects at least, or intermediate effects, so it seems to be working. There is still a fair degree of uncertainty, and based upon my long experience, I think it is a normal amount of uncertainty. So the current policy deserves being held.

Regarding the policy statement, I favor the wording in revised alternative B that was distributed by Vince yesterday afternoon because I think it captures the key points— the ones that are important to me at least—and they are moderate growth prospects, mention of the housing sector, better inflation readings and prospects of continued moderation (though it is still too early to draw definitive conclusions), continued inflation pressures, and a continued weighting to inflation risks with no suggestion that the current levels around 2 percent are acceptable for the long term. So for that set of reasons, I favor the wording as presented.

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