• Lower than anticipated defense spending, weaker exports, weather constraining factors
• Sees growth of 2% or below; slowdown transitory
• Recovery moderate; believes it is sustainable
• Would like to see more job creation
• Timing of tightening unclear
• Extended period means “a couple of meetings”, at least
• Fed believes a strong stable dollar in US interests and interests of global economy
• Strong economy will help dollar; boosting economy will boost dollar
• dollar fluctuates; safe-haven flows drove dollar higher, falling as that is unwound
• Keeping inflation low. strengthening economy will help over medium-term
• Gasoline prices have risen quite significantly; creating financial hardship
• Gas adds to inflation but creates a drag on growth; blames global demand for higher prices
• All additional demand over last decade has come from emerging markets; supply disruptions helping raise prices; a very adverse development; accounts for most of hike in inflation outlook;fed can’t create more oil
• Fed can attempt to keep gas prices from being passed through to other prices
• Labor market improving gradually; pace quite slow; labor market obviously not in good shape
• Some inflation expectations have risen; medium-term expectations have not moved very much
• No substitute for action if expectations move markedly
• Will do what is necessary to keep inflation low and stable
• End of QE2 to have much impact on financial markets; anticipated by markets
• So long as Fed maintains portfolio, impact should remain constant
• Stop reinvesting maturing securities would be a policy tightening