To earn this credibility the Fed should behave in a systematic way--generally lowering interest rates when employment rates are, or would otherwise be forecast to be, below the long-term sustainable rate; and raising interest rates when employment rates are, or would otherwise be forecast to be, above the long-term sustainable rate.
I am also aware that there has been interest by some members, particularly Congressman Frank, in my views, specifically my views about the relevance of the NAIRU concept to understanding recent economic performance and risks to the outlook. I welcome the chance to discuss these issues with you this morning.