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

Dave, the two measures of labor compensation that we typically look at—compensation per hour and the employment cost index—over a long period track each other fairly closely, but in the shorter run there’s more variance. Even though we’ve seen the recent downward revisions to compensation per hour, it’s still running higher than the ECI. I was wondering how you have approached weighing these two series in your assessment of the labor market and also how your outlook for inflation would change if you put more weight on the ECI, which is lower than compensation per hour.

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