• Will take a while to get inflation back to target; face real dilemma
• Question is whether or not to take a way a little stimulus from the economy
• We will bring inflation back to target in 2-3 years but will not jeopardize economy
• Compared to this time last yer, economy and banks healthier
• Much better inflation position today than compared to the 1970s and mid-1990s.
• Bank failure costs should not fall on taxpayers