Monetary policy decision We have decided to leave the current Libor target range unchanged and to continue aiming for the middle of the range. This decision is based on the following considerations. Our analyses show that, following the slowdown in the global economy, the outlook for inflation has improved, if we disregard the temporary rise that will occur over the next few months as a result of the rise in oil prices. Moreover, the turmoil affecting the international financial markets and the uncertainty with respect to the extent of possible fall-out on the rest of the economy all call for prudence. The risk of a rise in inflation has not been dispelled; of that there can be no doubt, given the rise in oil prices, the weakness of the Swiss franc against the euro, and the high level of capacity utilisation. Nevertheless, we do not consider this to be a matter of urgency and view an adjustment in our policy as unnecessary under the current circumstances. It is evident that we will continue to keep a very close watch on developments in the situation. Inflation forecast graph I will now turn to the final part of my remarks. What is our inflation forecast? The dashed red curve on the graph represents the new forecast. It relates to the period between the fourth quarter of 2007 and the third quarter of 2010, and maps the future development of inflation on the assumption that the 2.75% level remains constant over the forecasting period.
Although the Bronx is the city’s second smallest borough, it has 1.4 million residents – equal to the combined population of three to four average U.S. cities. You host world-class institutions such as the Yankees, the New York Botanical Garden, the Montefiore Medical Center and the Hunts Point Market. You also are home to the largest Dominican population in the city and sizable groups from around the globe. In sum, the Bronx is a major metropolitan area and economic force all on its own. What the New York Fed does By way of introduction, I will briefly review what the New York Fed does and what makes my job so interesting. As always, what I have to say reflects my own views and not necessarily those of the Federal Reserve System or the Federal Open Market Committee, also known as the FOMC. I serve as Vice-chair of the FOMC – a Federal Reserve committee that meets eight times a year in Washington, D.C., to set interest rates and make other decisions about monetary policy. At FOMC meetings, each Committee member presents a current regional and national outlook. For these assessments, we consult our researchers and add critical information that we learn from our boards of directors, regional councils and community leaders, such as you. At the New York Fed, we continually track conditions in our District and have created tools for that purpose.