Wednesday, October 27, 2010

Dudley's public comments (part 3)

Compared to his comments in the classroom, the press reports of his comments to the public Monday afternoon are quite a bit less interesting.

The Cornell Daily Sun mostly discusses a push for Cornell's research and patenting process to sell the patents to businesses so there can be more business growth. The Fed has little role to play there, he says, except to encourage people to believe that economic transactions are win-wins and try to reduce the dichotomy of "education-good, business-bad."

The Fed's website blandly (but clearly) summarizes that he talked about regional issues and took student questions. It also has the transcript of his public remarks. He introduced what the Fed system does and described in detail what the Fed did in 2007/08 as "responded aggressively." In doing so, he tried to show why they made the unpopular moves they did.

The key quote that is slightly different from what I remember was the use of the word and instead of or (as Sumner discussed today):
I said that I thought further Fed action was likely to be warranted unless the economic outlook were to evolve in a way that made me more confident we would see better outcomes for both employment and inflation before too long.

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