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

Thank you, Mr. Chairman. I support leaving the rate unchanged today because I still believe that the risks are to the upside on inflation and so we need to persevere at this level for a while. In terms of the wording, I want to offer another alternative. [Laughter] I’m concerned that in exhibit 5, alternative B, we’ve added “substantial” to housing and have noted weaker indicators. Yet the view around the table—and clearly my own view—is that the indicators have been mixed. A lot of strength is still showing. Consumer spending looks good. Employment looks good. If we want to talk about indicators, I would prefer some words that deal with President Plosser’s comments and say that “although recent economic indicators have been mixed, the economy seems likely to expand at a moderate pace on balance over the coming quarters” because that’s what we’re really saying. There’s some good news and there’s some bad news. By focusing just on the negative, I think we are signaling that we’re more concerned about a slowdown. I at least think that is inconsistent with a tilt of risk toward inflation. So I would do something along that line or go back to exhibit 4, which basically just recognizes that in the aggregate the economy has slowed a bit; but I’m uncomfortable with addressing only the weakness and not the strength.

Keyboard shortcuts

j previous speech k next speech