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

Thank you, Mr. Chairman. I favored a pause at the last meeting, and I haven’t really heard or seen anything since then that would cause me to change that view. Consequently, maintaining the pause seems like the right thing to do, and I favor the language in alternative B in communicating that decision. I would also like to add that I share the concern that most have expressed today that the trajectory of inflation may not head downward fast enough. However, I favor the current policy stance because I believe that the rates we have already implemented will bring the inflation rate down and because, as I said earlier, overtightening when the economy appears to be moderating more than we anticipated even just a couple of months ago is a concern to me. Mr. Chairman, the chart that you handed out today reaffirms that concern. Even though I am convinced that the inflation rate will fall, I am less convinced about how much and when. Right now, I am satisfied with breaking the momentum in the inflation process and will wait to see whether the moderation in the economy does stabilize. I can envision, as others have said today, a point in the future when our policy will have to be more ambitious to bring the rate of inflation down over time. Thank you, Mr. Chairman.

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