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

Well, you could do it either way. We did not take, for example, the last month’s incredible weakness in new-home sales at face value. We take a six-month moving average, calculate what we think the months’ supply is based on that, and have months’ supply come back to a more normal level over time. So it is like an inventory-sales ratio. The production adjustments that we have incorporated in this forecast basically bring that inventory-sales ratio most of the way back toward normal by the end of 2008, but not all the way.

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