Although such a transition will no doubt be marked by some bumps in the road, it represents a desired macroeconomic rebalancing that over the longer run can help ensure sustained non-inflationary growth. One of the fundamental factors underlying the deceleration in real activity is the lagged effect of the FOMC's removal of monetary policy accommodation between June 2004 and June 2006.
In the meantime, all should understand that the guidance we do provide cannot and will not deflect us from changing our strategy whenever we believe doing so to be necessary to meet our objectives. BIS Review 25/2005  5