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

My second point is that I definitely don’t want to blunder about when markets are fragile. I think we have to be very careful about this whole issue, but we should also recognize that markets aren’t exogenous either. Markets are influenced by what we say and do. So if for whatever reason there is not sufficient expectation that we would take a policy action today, that’s fine. But in my view we have to start building the case regarding what we are about in the longer run. So I can go along with the kind of policy that you’re suggesting, Mr. Chairman, but I wouldn’t go along with you forever on this, and indeed I know you don’t want me or anybody else to go along with you forever.

Purely on the statement—and virtually everybody has commented on this today—I think we have to unbundle the risks in the way that this draft statement does. I strongly support that part of your recommendation. I do have to be honest, though, and tell you that I have some qualms about the “taken together” sentence because it’s akin to adding up the risks for pears and adding up the risks for apples and putting them together. I’m uneasy about that, but I have no bright ideas for what to do about it today. The proposed wording is as good as anything I can think of today. But if I were placing a bet, I would bet that the language would need to be altered in three years when Roger’s swan gets even a little more eloquent and beautiful.

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