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

In past meetings I have expressed my misgivings about whether our strategy is going to bring inflation down fast enough. So I won’t belabor those again today. As I said earlier today, the inflation picture has, if anything, eroded a bit. So my misgivings remain. The outlook for real growth could conceivably weaken enough to alter my perspective on the fed funds rate, but that hasn’t happened yet. The data on manufacturing and nonresidential construction were marginally worse than expected, but they haven’t fundamentally altered my assessment nor, I take it, the assessment of many others that the current weakness is transitory rather than highly persistent. I still think the economy could theoretically handle a marginally higher fed funds rate. I’m also mindful of the apparently wide gap between the assessment of the market and what I believe to be the consensus around the table. In that context, I’m unwilling to signal that my concern about the trajectory of core inflation has diminished or to alter the general cast of the announcement regarding inflation. Thus, I favor alternative C. However, on the off chance that the Committee prefers alternative B, [laughter] I’d suggest that exhibit 5 is better than exhibit 4 on alternative B, section 2. I’d also associate myself with the views of Presidents Yellen and Minehan that alternative C, section 2, would be preferable to either. But I don’t even know if I have a say on that kind of thing. [Laughter]

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