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

Thank you, Mr. Chairman. Like many of you, I see no reason to materially change market expectations about our policy action. It is important that we not appear more comfortable with either the level or the trend of inflation than we actually are. Any nods in that direction in the statement are ripe to be misinterpreted, and the process of fixing any such nod would be tricky. Yesterday Vice Chairman Geithner said that financial markets are in a delicate place, and I would say that is particularly relevant in the context of this statement. So I would try not to mess with market expectations, given what we know about the state of our financial markets. All that having been said, I support alternative B. I like Governor Kohn’s amendment, and I still think we are running a bit of a risk in suggesting to the markets that we are more comfortable. But I don’t think there is really much we can do at this point to mitigate that risk more than the Kohn amendment suggests. Thank you.

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