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

Let me just provide a little domestic-side perspective on that. Obviously, one of the issues that we were struggling with in this projection is that we have a surprisingly shallow trajectory for the funds rate. And you might wonder why that isn’t showing through more forcefully in this forecast, but it is on the domestic spending side. We have for private domestic demand an acceleration of 1¼ percent this year, which moves up to 4½ percent next year and to 4¾ percent in 2006. The reason that isn’t showing through to top-line GDP and production is that, on our dollar and net export forecast, a lot of that demand is showing up in demands for producers abroad not in demands for producers domestically.

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