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

I can support your recommendation, Mr. Chairman. I like the statement and the decoupling of the references to inflation and growth. I would note that there are some potential and logical issues regarding the statement that will probably emerge as we get more experienced with it. For example, if the two risks are in opposite directions but one is severe and one is mild, would that be a balanced risk or would it be—? [Laughter] Exactly. At some point we may have to deal with this—weighting the two objectives, for example. So I would just point out that we may have to decapitate the swan at some point. [Laughter]

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