the ideal [monetary] situation is when changes in policy do not take the market by surprise. |
The market has a high degree of confidence the Fed will avoid |
The question is not whether the U.S. current account deficit will fall in the future but whether the inevitable adjustment is likely to be painful and disruptive of U.S. economic growth and stability -- a hard landing. |
There is no question that many households are suffering declines in real incomes. |
There will be some pressures on households, and that will be particularly true if we have a cold winter and natural-gas prices go up even further. |
Unlike the situation a year ago...at this point I very much go meeting by meeting by meeting. |
We don't have any schedule in front of us. |
We should continue that process as long as we have the view that the underlying economy is pretty robust...and the inflation risks are skewed to the upside, |
We should not just be on auto pilot, ... Policy is and should be responsive to incoming data. We need to be open to reading that evidence, not just continuing a policy course that we thought we locked in. |
We want to make sure that we don't have expectations build of a longer-run problem, |
We've been on a course of raising interest rates. The language in the last (Federal Open Market Committee) statement suggests that there was more to come...If we had wanted a different interpretation, we would have said something different, |
What we need to do is to allow the market ample room to take care of that problem, which the market is in the process of doing, |