"Our experiences clearly showed that efforts to manage or stabilize the real economy in the short term were beyond the scope of monetary policy, and if policymakers made aggressive attempts to do so, it would undermine the one contribution monetary policy could and should make to economic stability — price stability."I'm pretty sure that we're going to see some wicked inflation. I'm not sure Mr. Plossner agrees, but it would seem that he does think that price instability is a possible outcome of the FED's current policies. And I guess it's possible for prices to decrease.
No offense to Mr. Plossner, but it's a pretty dry speech. Things are going along ok, I'm just nodding off from the boredom, when he says "BOO!" really loud. He didn't really say BOO; but what he did say was:
"That is why I have advocated that the Fed and Treasury reach an agreement whereby the Treasury exchanges Treasury securities with the non-Treasury assets on the Fed’s balance sheet."