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

Thank you, Mr. Chairman. I very much support the proposal that you’ve outlined here. I think it does not tie our hands as individuals, which was one of my concerns originally. It allows us to do our work as members of this Committee and to put our information out there for our colleagues and for the public to judge, and I think that’s very important as individuals on the Committee. I think that the third-year projections are helpful. They do take on the tone of a goal. There’s no question about that, but I don’t think that it’s necessarily bad at all for us as individuals; and I don’t necessarily think the fact that we have differences is bad for us as a Committee so long as we’re clear about our analysis for that. So I’m very supportive of that.

I would move the minutes up if at all possible. I think they have served us well. We still work very hard on the statement, but the minutes have de-emphasized the importance of the statement because they clarify, and the sooner you can clarify through the minutes, the better the public is served. So, yes, we should proceed. I like four times a year. Now, how do we do it in terms of the description and so forth? That’s something I think we’ll experiment with over time. I really do like the histograms. I think they give a very clear piece of information to the public and to each of us. So I’m very supportive of them as well. The variables you have are just about right. I prefer the CPI, as I have in the past, but I certainly wouldn’t fall on my sword about it. I think getting this out is more important than whether we do the CPI or the PCE. I do think total inflation is very important—it helps clarify things for the public and allows us to explain the difference between it and core. If I had my choice, I’d stay away from the fed funds rate path. Appropriate policy or the way you have described it is fine. Using uncertainty in explaining it is extremely important because it is an uncertain business over time.

I would not have revisions; they distort what we had coming in. The minutes should describe parts of the discussion and clarify things for us as we go through it. So redoing the projections afterward serves no real useful purpose to my mind. I think we should move forward on this as you’ve described it here. I like your summary of what doing it accomplishes. Thank you.

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