Board of Governors of the Federal Reserve System

watched with admiration the remarkable management of the economy by the...And, third--and perhaps most troubling--a low equilibrium rate sends a

Market Committee made clear that its policy instrument was the federal...policy rules—and made it a core part of practical discussions. At the

market lifted construction activity and, by facilitating home equity extraction...the economic downturn, the retrenchment in equity markets, the increased

Watch Live Thank you for the opportunity to speak to you.1 The U.S. economy

debate. Mendoza (1995) and Kose (2002), for instance, report that terms...fiscal adjustments, all of which can reinforce the slowdown in economic

policy, with the reminder that these issues are separate from—and have...for—the stance of monetary policy. In light of the continued tightening

markets or other sources--and also hold substantial consumer deposits....markets facilitate investment by firms and, hence, promote economic growth

and, to the extent that inflation is inertial or sticky in the short run...and, consequently, the Fed retains the autonomy to set its federal funds

debate. Consumer spending continued to increase and activity in the travel...fiscal policy more generally. Cleveland and Dallas noted that retail hiring

Market Committee reduced the federal funds rate to support sustained economic...policy stance that these rules prescribe—and whether that stance is appropriate