Federal Reserve Board Governor Philip Jefferson spoke earlier on "Implementation and Transmission of Monetary Policy".
Q&A now:
- Inflation has been longer lasting and current rate is too high
- Want to return to 2% sooner rather than later; don't want expectations to become embedded
- Some components of inflation have proved persistent, lowering them will take time
- Would like to say inflation will return to 2% soon, but have to avoid damaging the economy "any more than is necessary"
Fed actions in recent weeks has aimed to show depositors there is "someone out there willing to lend"
Fed wants banks that need liquidity to feel its okay to use the discount window
recent rise in discount window lending is appropriate at the moment
