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

Thank you, Mr. Chairman. I just want to follow up a bit on the tail end of the conversation with President Poole about residential investment. One of the big changes in your forecast was the additional markdown of pushing the recovery in residential investment out further and sustaining a more negative effect on your forecast. My sense is that had a fairly significant impact going forward. I am curious as to what extent that outcome was really model driven in that your actual estimation of the fundamentals changed, or was it more judgmental? If it resulted from the fundamentals that were predicted by the model, what were the pieces of evidence that were driving that change, or was it just a judgmental thing that is saying it will take longer? Can you elaborate a little on where that came from?

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