Speech

The economy at midyear

Abstract: Remarks at a Community Luncheon hosted by the Federal Reserve Bank of Dallas, San Antonio Branch, Corpus Christi, Texas, June 14, 2006 ; \"Against the background of sustained high prices for oil and gasoline and the inevitable propensity of sellers of goods and services to try to pass on cost increases, the brow begins to furrow in contemplating the inflation picture. On the one hand, I know that the Trimmed Mean PCE Deflator is running at a rate that is just too corrosive to be accepted by a virtuous central banker. But I also know, having been party to it, of the incremental tightenings to which we have been subjecting the base interest rate. And I am fully aware that there is a lag between the time we tighten the valve and the time the impact of that tightening is felt.\"

Keywords: economic conditions - United States; Federal Reserve System; Inflation (Finance); Monetary policy;

Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Speeches and Essays

Publication Date: 2006

Number: 69