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

I realize that when I finished my comments I was never really clear about language. After sorting through all the comments that people have made and my thoughts about those comments, I am perfectly happy with alternative B as it is written and with the “on balance” language. I do want to say, though, that if we had replaced the language in section 3 with that about inflation pressures and uncertainty, the juxtaposition of the sentence “Inflation pressures seem likely to moderate over time, but considerable uncertainty surrounds that judgment” indicates that the uncertainty relates to “moderate over time,” and it’s clear that the uncertainty is about inflation being higher rather than lower. That statement would be somewhat more hawkish and, in fact, more reflective of where people’s balance of concern was. I am totally in agreement that there is no need to change this language right now, but I did want to weigh in a bit there.

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