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

All he needs to do is to state what his intentions are in advance. In other words, he can indicate that he will supply a certain amount of reserves over a specific period. The current approach is clearly not the optimal policy procedure. I’m not sure it’s doing any harm or causing problems, but I can conceive of a situation in which we might find that the injection of reserves on the upside or on the downside leads to an inadvertent effect if an external event occurs in the process when you’re reestablishing the balance later in the maintenance period.

Keyboard shortcuts

j previous speech k next speech