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

I have two questions about the prisms you gave us for looking at the current stance of policy and the likely path of policy. Brian, in your comments on exhibit 3 you said that alternative A, as your last bullet says, “is consistent with estimated policy rules.” Can you just elaborate on that? My quick reading of it suggests that, as long as our inflation objective is 2 percent, the range of policy rules that we look at basically will show the funds rate at or under the market path. If you have a different inflation objective, then we’re at the middle of the distribution or maybe slightly under the plausible distribution. Am I reading that right?

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