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

It’s mine. When you’re the father of something that even at the age of three proves not to be as attractive as you had hoped, you have one of two choices. You can still embrace it because it’s yours and wait for it to grow up and become that lovely swan that you expect. Or you can say, “You know, you’re not as attractive as we had hoped, and maybe someone else wants to adopt you.” [Laughter] This record will be public in five years, and my children at that stage will be old enough to actually have an interest in what their father was saying in this room. They will be teenagers by then, and they will really resent me!

Now, with respect to the creation of the balance of risks language, the then Director of Monetary Affairs and I got together and tried to work out the matrix of what might happen over the longer-term horizon. When we did that, I will admit that I did not see that the U.S. economy would be in a position where we’d have extremely low, and possibly declining, inflation and also expanding growth with a forecast of above-trend growth. So the language that we used—and it was not his fault, it was mine—didn’t fully pick up the type of situation we are in today. So I think what you have proposed in the third paragraph of this draft statement will get us through this period quite nicely. It disentangles the two elements of our dual responsibility. It comes back with a weighted average. I believe it’s as clear as can be, and I’m very supportive of it. Overall, I think this is a great statement. And in the context of having a meeting coming up in June, I’m very supportive of your recommendation.

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