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

One small thing. On the other side of the devil and the deep blue sea, there is such a sharp contraction of residential investment, which lasts basically for a year and a half—the forecast does attenuate the rate of decline into ’07, but the contraction lasts pretty much a year and a half from where we are. Could it be faster? Could builders see that it is in their best interest to stop building now so that prices do not go down on new homes faster than they have gone already and inventories do not build anymore. Could that contraction be shorter, and could we come out of it faster?

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