There were a lot of economists at the Fed who thought not tightening back then was very dangerous. The great accomplishment of the Greenspan Fed was recognizing that productivity growth would allow the economy to grow at a faster rate. |
There's more of the same on the horizon of good times. There's no obvious reason for the good times to end. |
They will simply be engaged in discussions of the Indonesian situation, and attempting to assess how things are going there and emphasizing the President's resolve that Indonesia take the necessary structural steps the IMF believes are necessary for recovery, |
This sector has been a key source of strength in the current expansion, and the concern is that, if house prices fell, the negative impact on household wealth could lead to a pullback in consumer spending. |
This suggests a presumption that the rate (now at 3.75 percent) will need to be raised further, |
Those of you who lived through the 1970's will remember that higher oil prices touched off a wage-price spiral that pushed inflation into double-digit territory, |
Those of you who lived through the 1970s will remember that higher oil prices touched off a wage-price spiral that pushed inflation into double-digit territory. |
We all remember the bad old days of the 1970s ... It is stamped on the mind of central bankers, |
We all remember the bad old days of the 1970s ... the Fed's response went down as one of the greatest monetary policy mistakes in my lifetime, |
We all remember the bad old days of the 1970s ... the Fed's response went down as one the greatest monetary policy mistakes of my lifetime, |
We do need to be careful about overshooting. |
You are seeing some pass through of high energy and commodity prices, import prices, into core inflation. |