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

Thank you, Mr. Chairman. I just want to follow up on Vice Chairman Geithner’s first question—on inflation. It seems to me that most of the factors that are leading to lower inflation in this forecast period are temporary—energy prices, owners’ equivalent rent, and import prices. The longer-term factors are the pressures in the labor market that we’ve talked about and maybe some follow-through from the earlier accommodative financial conditions that we’ve had. As you said, chart 6 of the Bluebook, when you look past the forecast period, doesn’t show inflation coming down. Inflation actually goes up a bit with both the 1½ percent target and the 2 percent target. Doesn’t this mean that expectations have moved up a bit when you see inflation go up in ’09 and beyond?

Keyboard shortcuts

j previous speech k next speech