CHAIRMAN BERNANKE.
I think it 's clear that oil price declines will lower both total and core inflation , but will also increase growth .
The legislation also requires the CFTC to study and report on the effects of potential position limits within OTC trading .
MR. STOCKTON.
Nathan will then discuss trade and foreign activity before turning to global commodity markets and our forecast for import prices .
MS. PIANALTO.
My business contacts are telling me that capital investment is a bit soft , but it should not at this point pose a serious problem for the overall economy .
MR. LACKER.
Third , as we 've discussed at previous meetings , the projected increase in unemployment is not likely to have much of an effect on inflation , over the forecast period at least .
Mr. Chairman and Members of the Committee , I am pleased to be here to present the Federal Reserve 's Monetary Policy Report to the Congress .
MR. LEAHY.
248 , MR. LEAHY. , '' The top left panel of exhibit 11 presents our outlook for foreign real GDP growth .
MR. KOHN.
The consumption and investment data for late months in the quarter do n't suggest an acceleration going into the third quarter .
MR. HOENIG.
Generally speaking , I am more optimistic than the Greenbook , especially with regard to housing and consumer spending , and I 'm not nearly as pessimistic as the Greenbook on potential output .
Chairman Bernanke , your testimony and report this morning note the economy 's strong performance in the first half of 2006 .
MS. YELLEN.
The modest amount of slack that this entails should help bring about the desired gradual reduction of inflation in the future .
MR. PLOSSER.
In the other scenario , stimulative monetary policy during the past five years has been a major contributor to the rise in core inflation .
MR. STOCKTON.
58 , MR. STOCKTON. , `` 2 As we see it , the recent configuration of data suggests that , to the extent that there was any noticeable weakness in the fourth quarter , it was short-lived , and we are Thank you , Mr. Chairman .
MR. SHEETS.
The individual contributions of exports and imports to U.S. GDP growth have both risen about percentage point in recent years .
Mr. Chairman and Members of the Committee I am pleased to be here again to present the Federal Reserve 's Monetary Policy Report to the Congress .
We provide producers and processors with necessary information to make important economic decisions and serve their global risk management needs .
MS. PIANALTO.
The Greenbook baseline captures very well the pattern that I 've been describing in its projection for nonresidential investment over the next few years .
MR. FISHER.
We differ significantly , Mr. Chairman , from the central assumption of the Greenbook in our views on headline inflation looking forward .
Mr. Lucas , '' Thank you , Mr. Chairman , and Ranking Member Garrett , for holding today 's hearing .
MS. JOHNSON.
We model energy demand , energy consumption , energy production , and the implied change in inventories on a global basis .
MS. JOHNSON.
To some extent , the double-digit growth of U.S. real exports early this year reflected rapid real GDP growth abroad at that time .
MR. KOS.
The spreads between the June ’06 and June ’05 contracts widened to reflect this more aggressive expected path of tightening .
THE CREDIT BUBBLE : GLOBAL CAPITAL FLOWS , UNDERPRICED RISK , AND FEDERAL RESERVE POLICY The financial and economic crisis began with a credit bubble in the United States and Europe .
MR. PLOSSER.
Banks expect somewhat sluggish growth in overall lending for the rest of the year , although compared with some regions , banks in our District are in pretty good shape .
Removing that significant market liquidity and making transactions more opaque to U.S. regulators would be detrimental to the public interest .
MR. FISHER.
133 , MR. FISHER. , '' Mr. Chairman , as reported in the Beige Book , activity in our District has picked up substantially .
MR. ROSENGREN.
My own view is that residential investment is likely to be as weak as in the Greenbook forecast but that potential may be closer to Boston 's estimate .
MR. MORIN.
In addition , we cut back the size of the judgmental adjustments for financial turmoil to their September Greenbook levels .
MR. MORIN.
The shaded area shows the range of results from the model-based estimates detailed in Part 1 of the October Greenbook .
MS. YELLEN.
Moreover , part of the recent uptick traces to large increases in housing costs that are finally showing up in the CPI just as the housing market is slowing .
And beyond that concern , is that decline in the dollar -- does that decline represent a decrease in confidence in the U.S. financial system ?
CHAIRMAN BERNANKE.
I think that the objective of the Federal Reserve ought to be to avoid a very bad outcome , and so my concerns are primarily with tail risks on both sides of our mandate .
MR. STOCKTON.
34 , MR. STOCKTON. , '' It is the case , however , Mr. Chairman , that there has been a broad - based upward movement in commodity prices in the last four weeks .
MR. ROSENGREN.
Some indicators of inflation are higher than we want , but during previous recessions , commodity prices and inflation rates fell .
MR. FISHER.
Mr. Chairman , I think we 've gone as far as is prudent for now , and that 3 percent , together with the other initiatives we 've taken to restore liquidity , is sufficient .
MR. FISHER.
At home , we 're seeing unacceptably high and sustained wage developments for certain critical components of labor , which I mentioned earlier .
MR. SHEETS.
Continued concerns about the longer-term supply-demand balance , however , have kept the far-futures price at its late-November level , near $ 87 per barrel -- up about $ 7 since the last FOMC meeting .
MS. YELLEN.
However , the employment cost index was in line with expectations in June and continues to show moderate growth .
MR. KOHN.
I continue to believe that the 2 percent nominal funds rate is not indicative of a highly accommodative financial condition , given the current state of financial markets .