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

Well, that in a way is what we’ve been trying to do. We’ve been trying to do that obviously by persuading the Chinese and others who have been intervening in the foreign exchange market. What I find disturbing about the scenario that Karen has outlined is that we may achieve the adjustment in a wholly inappropriate macroeconomic environment. I’m not saying there’s anything we can do or say about it, but I don’t think we can just push the issue aside. Who else in the world is going to think about this other than the Federal Reserve? There’s no one else in the American government. On the G-7, there’s really no one else but the United States. To the extent that events of this nature go on, they are observed and evaluated but without some notion of whether there are policy relationships involved. I’m just saying that, if we don’t do it, I don’t know who else will. As I look around the world, there are a lot of very good people, a lot of thoughtful people, but the mechanism through which adjustments would occur is the G-7.

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