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

Well, I, too, support alternative B, and simple logic: We haven’t arrived at the optimal picture yet. Output growth is slowing, inflation is still elevated, and there is a fair amount of uncertainty. Some of us focused on uncertainty in the inflation picture, and some on both sides. I think the situation merits a patient approach at this juncture; we should give it some more time. Regarding the language, not being well schooled in the literary style of the FOMC, I, too, focused on the “on balance” phrase, thinking that it injected maybe a hint of equivocation. I understand the logic. I believe what I heard President Yellen saying is that we have to think in a two-step process here—that is, if you put it in and then the next time around take it out, how do the markets react? So for what it’s worth, I focus on that, not quite knowing how to process the “on balance” language. Otherwise, I’m going to abstain from the language debates here until I have a little more experience.

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