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

Thank you, Mr. Chairman. First, I support no change today. I do not believe there has been enough information to change my mind from the last meeting. I support alternative B because I am concerned that B+ is more of a commitment that we are going to do something, and I am not ready to go that far. However, I agree with President Minehan’s comments that the long-term inflation level above 2 percent, especially now that we have 2008 in the forecast, is worrisome because of where we are with resource utilization and potential growth and the potential conflict that I see there. I also remember that I was very nervous when inflation was dropping. It was below 1 percent. Going between the short-run spikes down and short-run spikes up gets one nervous. So not only do we need to think about the range, but also we need to think about what we mean by the medium term in which to gauge it. I look forward to this discussion because it may help me put those thoughts together at the next meeting. But for today’s meeting, I favor alternative B as it is and no change in rates.

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