Board of Governors of the Federal Reserve System

investors and users of capital--at least significantly overlapping in ...policy--raises as many questions as it answers. My remarks this morning

expectations that are well anchored at 2 percent foster price stability...expectations at this level, the Committee seeks to achieve inflation that

policy should require that rewards reflect the success or failure of managements...Expectations of stock price movements, in turn, appear to be significantly

investors re-evaluated the profitability of capital spending and the productive...investors realized their error, rates would fall back. And markets would

expectations appear to remain well anchored, as reflected in a broad range...expectations well anchored. Our success in delivering on these goals matters

policy to promote maximum employment and stable prices in the U.S. economy...expectations for its balance sheet over the next year and any recent or

policy and sectoral trade outcomes A central question in current policy...policy measures. As Table A.1 in the appendix shows, these policies span

September 7, 2005 Summary of Commentary on Current Economic Conditions by Federal Reserve District Summary Prepared at the Federal Reserve Bank

investors, costs to handle delinquent and charged-off loans and other ...expectations of future events and market conditions, as well as customer

expectations appear stable; for example, expected inflation over the next...investor confidence in turn allowed the banks to raise substantial amounts