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

I would like to compliment you, David Stockton, and your staff for inclusion in this meeting’s Greenbook, Part 2, on page II-36, of an array of measures of inflation expectations, apparently in response to needling from me. I can assure you that this will have no moral hazard effect, and you will get neither no more nor no less needling in the future than you would have. So this is not going to encourage more needling. I think that effort will help going forward, and I look forward to more steps in this direction. You just mentioned in response to President Moskow that close to 2 percent expected inflation underlies the Greenbook’s baseline forecast, and that is useful information. I also want to compliment you on the documentation about inflation dynamics. I think that will be useful groundwork for us on the Committee. What I hope we do in the next year or so as part of the Kohn subcommittee deliberations on communications is to come to some understanding of how the pattern that guides our conduct—call it a rule or systematic component of monetary policy—relates to inflation dynamics and to discuss what inflation dynamics we want to bring about.

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