Presentation Materials (PDF)

Pages 173 to 206 of the Transcript

Appendix 1: Materials used by Mr. Sack

Material for
FOMC Presentation: Financial Market Developments and Desk Operations

Brian Sack
April 27, 2010

Class II FOMC - Restricted FR

Exhibit 1

Top-left panel
(1)

Title: Equity Prices
Series: Standard & Poor's 500 Index, MSCI World Index
Horizon: August 1, 2008 - April 23, 2010
Description: Major equity indexes advanced over the intermeeting period.

A vertical line marks the FOMC meeting of March 16, 2010.

Source: Bloomberg

Top-right panel
(2)

Title: Equity Risk Premium
Series: Equity Premium
Horizon: January 1, 1990 - April 21, 2010
Description: The equity risk premium remains elevated.

Source: Federal Reserve Board of Governors.

Middle-left panel
(3)

Title: Corporate Bond Spreads
Series: High yield and investment grade corporate bond spreads
Horizon: August 1, 2008 - April 22, 2010
Description: Corporate bond spreads narrowed further over the intermeeting period.

Source: Bank of America

Middle-right panel
(4)

Title: CMBS Spreads
Series: CMBS spreads for junior, mezzanine and super senior tranches
Horizon: August 1, 2008 - April 16, 2010
Description: CMBS spreads narrowed over the intermeeting period.

Source: JP Morgan

Bottom-left panel
(5)

Title: Bank Equities
Series: Percent change in selected financial institution equity prices from 3/15/10 to 4/15/10, and from 4/15/10 to 4/26/10
Horizon: March 15, 2010 - April 26, 2010
Description: Equity prices gained sharply through mid-April, but declined following the SEC's announcement of legal action against Goldman Sachs on April 16.

GS, DB, UBS, JPM, BAC, WFC, MS, C, Regional Bank Index

Source: Bloomberg

Bottom-right panel
(6)

Title: Peripheral Euro-Area Yield Spreads to German Debt*
Series: Level of the debt spread on March 15, 2010, and change in the spread between March 15 and April 26
Horizon: March 15, 2010 - April 26, 2010
Description: Bond spreads on Greek and other peripheral Euro-area countries (Portugal, Ireland, and Spain) have widened over the intermeeting period.

* 2-yr yields.  Return to text

Source: Bloomberg

Exhibit 2

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(7)

Title: Implied Federal Funds Rate
Series: Future federal funds rates implied by Eurodollar and federal funds futures contracts
Horizon: 3/15/10, 4/23/10
Description: The implied path of the federal funds rate has not changed over the intermeeting period.

Source: Federal Reserve Bank of New York

Top-right panel
(8)

Title: Average Probability Distribution of First Policy Rate Increase
Series: Primary dealer and buy-side firm expectations for the timing of the first policy rate increase
Horizon: N/A
Description: Survey respondents placed the highest probabilities on the first tightening occurring either in the second half of this year or the first half of next year.

Source: Federal Reserve Bank of New York Policy Survey, including responses from primary dealers and buy-side firms

Middle-left panel
(9)

Title: Treasury Yields
Series: Yields for the 2-year, 5-year, and 10-year Treasury note
Horizon: August 1, 2008 - April 23, 2010
Description: Treasury yields edged higher over the intermeeting period.

Source: Bloomberg

Middle-right panel
(10)

Title: Swap Spreads
Series: 2-year and 10-year swap spreads
Horizon: August 1, 2008 - April 23, 2010
Description: Swap spreads have reached unusually tight levels by historical standards.

Source: Bloomberg

Bottom-left panel
(11)

Title: 10-Year Treasury Term Premium
Series: Treasury term premium
Horizon: August 1, 2005 - April 23, 2010
Description: The Treasury term premium remains higher than its levels in recent years.

Source: Federal Reserve Bank of New York

Bottom-right panel
(12) Average Probability of Federal Reserve Treasury Redemption Policies

Source: Federal Reserve Bank of New York Dealer Policy Survey

Exhibit 3

Top-left panel
(13)

Title: Weekly Pace of Purchases
Series: Weekly purchases of MBS and agency debt
Horizon: December 10, 2008 - April 21, 2010
Description: The desk completed the purchases of agency debt and MBS at the end of March.

Source: Federal Reserve Bank of New York

Top-right panel
(14)

Title: MBS Weekly Trading Volumes
Series: Four-week moving average of MBS trading volumes
Horizon: January 1, 2008 - April 21, 2010
Description: Liquidity in the MBS market has not been materially affected by the end of the purchase programs.

Source: FR2004 (1/2 interdealer + customer)

Middle-left panel
(15)

Title: MBS Spreads
Series: Fannie Mae fixed-rate current coupon option-adjusted spreads to Treasury and to swaps
Horizon: January 1, 2009 - April 22, 2010
Description: MBS spreads have moved higher from the very low levels reached in 2009.

Source: Barclays Capital

Middle-right panel
(16)

Title: Impact on Yields from Purchase Programs
Series: Primary dealer and buy-side firm beliefs concerning the impact of the purchase programs on yields
Horizon: N/A
Description: Survey respondents believe the effect of the purchases was as much as 100 bps but that about 30 bps of that effect has unwound.

Source: Federal Reserve Bank of New York Policy Survey, including responses from primary dealers and buy-side firms

Bottom-left panel
(17) Probability of Asset Sales

Source: Federal Reserve Bank of New York Policy Survey, including responses from primary dealers and buy-side firms

Bottom-right panel
(18)

Title: Impact on Yields from MBS Sales
Series: Primary dealer and buy-side firm beliefs about the impact of MBS sales on yields
Horizon: N/A
Description: Survey respondents believe that a decision to begin selling MBS would put upward pressure on Treasury yields and the MBS rate.

Source: Federal Reserve Bank of New York Policy Survey, including responses from primary dealers and buy-side firms

Exhibit 4

Top-left panel
(19)

Title: Treasury Repo and Fed Funds Rates
Series: The general collateral Treasury repo rate and the effective federal funds rate
Horizon: October 1, 2009 - April 23, 2010
Description: Overnight interest rates have firmed since the beginning of March.

Source: Federal Reserve Bank of New York

Top-right panel
(20)

Title: Excess Reserves and the Fed Funds Rate
Series: The effective federal funds rate and the level of excess reserves
Horizon: January 2, 2009 - April 23, 2010
Description: Recent observations for the effective federal funds rate have been higher than they had been in the past at similarly high levels of excess reserves.

Source: Federal Reserve Bank of New York

Bottom-left panel
(21)

Title: Fed Funds Futures Rates
Series: Rates implied by federal funds futures contracts
Horizon: February 1, 2010 - April 23, 2010
Description: The rates on federal funds futures contracts through May have all shifted higher.

Source: Bloomberg

Bottom-right panel
(22)

Title: Factors Leading to Increase in Fed Funds Rate*
Series: Survey respondents' rankings of various factors leading to the recent increase in the fed funds rate
Horizon: N/A
Description: Survey respondents have pointed to the increase in the SFP issuance and the supply of Treasury collateral as the most important factors in recent firmness in the federal funds rate.

Announcement of SFP: 3.17. Increases in Treasury Supply: 2.94. Decreases in Reserves: 2.47. GSE Delinquent Buyouts: 2.24. Increase in Primary Credit Rate: 1.47.

* Ratings were constructed by assigning the following values: Not important=1, Somewhat Important=2, Important =3, Very Important=4. The weighted average was then taken to construct the average rating.  Return to text

Source: Federal Reserve Bank of New York Dealer Policy Survey

Appendix 2: Materials used by Mr. Madigan

Material for Briefing on Strategies for Asset Sales and Redemptions

Brian Madigan
April 27, 2010

Class I FOMC - Restricted Controlled (FR)

Table 1: Possible Longer-Run Approaches to Redemptions and Asset Sales Characteristics Assumed in the Staff Analysis

Exhibit 2
Balance Sheets

Greenbook-consistent Projections

Top-left panel
SOMA holdings

* Redemptions for Treasury and agency securities, redemptions and prepayments for agency mortgage-backed securities; no asset sales.  Return to table

Top-right panel
MBS holdings

Bottom-left panel
Treasury holdings

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Reserve balances

Exhibit 3
Macroeconomic Consequences Under Alternative Balance Sheet Strategies

Greenbook-consistent Projections

Top-left panel
Federal funds rate

* Redemptions for Treasury and agency securities, redemptions and prepayments for agency mortgage-backed securities; no asset sales.  Return to table

Top-right panel
10-year Treasury interest rate

Middle-left panel
30-year mortgage rate

Middle-right panel
Real GDP growth*

* Q4/Q4 growth rate  Return to text

Bottom-left panel
Unemployment rate

Bottom-right panel
Core PCE inflation*

* Q4/Q4 growth rate  Return to text

Appendix 3: Materials used by Mr. Madigan

Material for Briefing on FOMC Participants' Economic Projections

Brian Madigan
April 27, 2010

Class I FOMC - Restricted Controlled (FR)

Actual values for years 2005 through 2009.

Note: Definitions of variables are in the notes to table 1. The data for the actual values of the variables are annual.

Exhibit 2: Economic Projections for 2010-2012 and Longer Run

NOTE: See Table 1 for variable definitions

Exhibit 3. Risks and Uncertainty in Economic Projections

Top-left panel
Uncertainty about GDP Growth

Top-right panel
Risks to GDP Growth

Bottom-left panel
Uncertainty about PCE Inflation

Bottom-right panel
Risks to PCE Inflation

Appendix 4: Materials used by Mr. Sheets

Europe: Average Residual Maturity of Outstanding Government Debt

* Average residual maturity of marketable debt, as of April 15, 2010.

In 2007, 98.5 percent of Greek debt issuance had maturity of at least 5 years.

Appendix 5: Materials used by Mr. Sack

Federal Reserve System

Date: April 28, 2010

To: Federal Open Market Committee

From: William English, Brian Madigan, and Brian Sack

Subject: Redemption of Treasury Securities Under Alternative Approaches

In yesterday's discussion of the redemption strategy for the Federal Reserve's holdings of Treasury securities, several FOMC members raised the possibility of running down our holdings of longer-term securities while continuing to reinvest in shorter-term issues. The table below summarizes the amount of redemptions achieved under several potential strategies along these lines.

All figures are year-end amounts assuming redemptions begin May 3.

Appendix 6: Materials used by Chairman Bernanke

Comparison of Taylor Rule Prescriptions

Two line charts display the Taylor (1993) and Taylor (1999) policy rule prescriptions for the setting of the federal funds rate, from 2000 through 2010. In addition, the actual nominal federal funds rate is plotted in each of the figures.

Top panel
Inflation Measure: CPI or GDP Deflator

In the first chart, two variants of each of these rule prescriptions are provided: one using the CPI inflation rate as the inflation measure, and one for which inflation is computed using the GDP deflator. The interest rate prescriptions initially are generally above the actual federal funds rate and take values of around 7 percent, then fall to around 2 percent by mid-2002. The federal funds rate falls in 2001 and takes values below 2 percent over much of 2002 and 2003, slowly picking up from 2004 onward. The Taylor rule prescriptions rise in value more rapidly, reaching around 6 percent by the start of 2006. As the actual federal funds rate stabilizes for around a year at 5 percent, the Taylor rule prescriptions using CPI inflation drop sharply, then stabilize before rising to around 6-7 percent during 2008, thereafter falling to minus 6 percent and minus 10 percent for the 1993 and 1999 rule prescriptions, respectively. Using the GDP deflator inflation rate, the Taylor rule prescriptions move more closely with the actual federal funds rate, slowly decreasing to the effective lower bound by 2009 then dropping below the lower bound for the remainder of the period.

Bottom panel
Inflation Measure: Core CPI or Core PCE

The second chart brings out the implications of using core PCE inflation and core CPI inflation as the inflation series in the computation of prescriptions from the two Taylor rules. The prescriptions using core inflation rates do not generally imply deviations from the actual federal funds rate as large as the Taylor rule prescriptions using the headline rates. The rule prescriptions using core instead tend to move closely with the federal funds rate. The general shape of the rule prescriptions' movements mirrors that seen in the previous figure. Prescribed values move from around 6 percent down to 2 percent by 2004, then rising to around 5 percent by 2007. The prescribed values from the rules then fall below the federal funds rate for a brief period; by 2008, however, the funds rate is decreasing more rapidly than the rule-prescribed values. The funds rate reaches its lower bound by the beginning of 2009, at which time the Taylor (1993) rule prescription is somewhat above the lower bound, and the Taylor (1999) rule prescription has dropped to around minus 5 to 6 percent.

Page 2

Top panel
The Unemployment Gap and the Commencement of Tightening

A line chart plots two series: the real-time estimate of the unemployment gap and the revised (or ex post) estimate of the unemployment gap (unemployment minus the full-employment rate of unemployment) over the period from 1980 to 2010. In addition, the figure shows three vertical lines corresponding to June 1983, February 1994, and June 2004, each of which roughly corresponds to a period in which a monetary policy tightening period began. For the first three years of the period, the real-time unemployment gap is not shown, leaving only the revised gap which increases from zero to its November 1982 maximum of 4.3 percent, which was then closed over the following five years. The real-time gap until the late 1980s is roughly a quarter percentage point wider than the revised gap. In 1990, both gaps widen again and the difference between the two series is minor over the next two years; both series reach a maximum of about 2.3 percent in June 1992. Both gaps then close, with the real-time gap declining more steeply for three years, being roughly zero at the time of the February 1994 tightening. The gaps then decrease more gradually for approximately five years; for 2000, both series imply unemployment was about 1 percent below the sustainable rate. Subsequently, they both show a steep rise, taking very similar values, reaching about 1.4 percent in June 2003, and then begin a more moderate decline until 2007 (being about 0.7 percent at the time of the 2004 tightening). The final three years are associated with a steep widening of the gaps, which stand at 4.9 percent in October 2009.

Middle panel
Net Changes in Nonfarm Payrolls

Bottom panel
The Recent Evolution of Consumer Prices and M2

Appendix 7: Materials used by Mr. English

Material for FOMC Briefing on Monetary Policy Alternatives

Bill English
April 27-28, 2010

Class I FOMC - Restricted Controlled FR

March FOMC Statement

1. Information received since the Federal Open Market Committee met in January suggests that economic activity has continued to strengthen and that the labor market is stabilizing. Household spending is expanding at a moderate rate but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly. However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls. While bank lending continues to contract, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability.
2. With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time.
3. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve has been purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt; those purchases are nearing completion, and the remaining transactions will be executed by the end of this month. The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.
4. In light of improved functioning of financial markets, the Federal Reserve has been closing the special liquidity facilities that it created to support markets during the crisis. The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close on June 30 for loans backed by new-issue commercial mortgage-backed securities and on March 31 for loans backed by all other types of collateral.

[Note: In the April FOMC Statement Alternatives, strong emphasis (bold) indicates bold red underlined text in the original document.]

April FOMC Statement--Alternative A

1. Information received since the Federal Open Market Committee met in March suggests that economic activity has continued to strengthen and that the labor market is showing signs of improving. Although growth in household spending has picked up recently, it is likely to remain constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly; however, investment in nonresidential structures is declining and employers remain reluctant to add to payrolls. Housing starts have edged up but remain at a depressed level. While bank lending continues to contract, financial market conditions remain supportive of economic growth.
2. Although longer-term inflation expectations have remained stable, recent data suggest inflation has been trending down in response to substantial resource slack. The Committee anticipates that inflation is likely to be quite subdued for some time.
3. To promote a more robust economic recovery in a context of price stability, the Committee anticipates maintaining the target range for the federal funds rate at 0 to ¼ percent for an extended period--until economic conditions such as appreciably higher rates of resource utilization, increasing inflation pressures, or rising inflation expectations warrant a less accommodative monetary policy. The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.
4. [To gradually reduce the size of the Federal Reserve's balance sheet and return it to a more normal composition over time, the Committee will maintain its approach of not reinvesting the proceeds of maturing agency debt and payments on mortgage-backed securities held by the System Open Market Account. The Committee is continuing to roll over maturing Treasury securities.]
5. In light of improved functioning of financial markets, the Federal Reserve has closed all but one of the special liquidity facilities that it created to support markets during the crisis. The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close on June 30 for loans backed by new-issue commercial mortgage-backed securities; it closed on March 31 for loans backed by all other types of collateral.

April FOMC Statement--Alternative B

1. Information received since the Federal Open Market Committee met in March suggests that economic activity has continued to strengthen and that the labor market is beginning to improve. Growth in household spending has picked up recently but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly; however, investment in nonresidential structures is declining and employers remain reluctant to add to payrolls. Housing starts have edged up but remain at a depressed level. While bank lending continues to contract, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability.
2. With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time.
3. The Committee will maintain the target range for the federal funds rate at 0 to ¼ percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.
4. [To gradually reduce the size of the Federal Reserve's balance sheet and return it to a more normal composition over time, the Committee will maintain its approach of not reinvesting the proceeds of maturing agency debt and payments on mortgage-backed securities held by the System Open Market Account. The Committee is continuing to roll over maturing Treasury securities.
   
      OR
   
   To gradually reduce the size of the Federal Reserve's balance sheet over time, the Committee will maintain its approach of not reinvesting the proceeds of maturing agency debt and payments on mortgage-backed securities held by the System Open Market Account. In addition, on May 3 the Committee will stop reinvesting the proceeds of maturing Treasury securities.]
5. In light of improved functioning of financial markets, the Federal Reserve has closed all but one of the special liquidity facilities that it created to support markets during the crisis. The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close on June 30 for loans backed by new-issue commercial mortgage-backed securities; it closed on March 31 for loans backed by all other types of collateral.

April FOMC Statement--Alternative C

1. Information received since the Federal Open Market Committee met in March indicates that economic activity has continued to strengthen and that the labor market is improving. Though investment in nonresidential structures is declining, housing starts have edged up, growth in household spending has increased, and business spending on equipment and software has risen significantly. While bank lending continues to contract, financial market conditions have become more supportive of economic growth. With economic recovery under way, the Committee anticipates a gradual return to higher levels of resource utilization.
2. Although energy prices have risen on balance in recent months, inflation has remained subdued. The Committee will adjust the stance of monetary policy as necessary over time to ensure that longer-term inflation expectations remain well anchored and that inflation outcomes are consistent with price stability.
3. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and now anticipates that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for some time.
4. The Committee will maintain its approach of not reinvesting the proceeds of maturing agency debt and payments on mortgage-backed securities held by the System Open Market Account. In addition, on May 3 the Committee will stop reinvesting the proceeds of maturing Treasury securities. To further reduce the size of the Federal Reserve's balance sheet, and to return the balance sheet to a more normal composition, the Committee anticipates that it will soon begin gradual sales of agency debt and mortgage-backed securities. The timing and pace of such sales will depend on evolving economic and financial conditions. The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.
5. In light of improved functioning of financial markets, the Federal Reserve has closed all but one of the special liquidity facilities that it created to support markets during the crisis. The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close on June 30 for loans backed by new-issue commercial mortgage-backed securities; it closed on March 31 for loans backed by all other types of collateral.

March 2010 FOMC Directive

The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability and promote sustainable growth in output. To further its long-run objectives, the Committee seeks conditions in reserve markets consistent with federal funds trading in a range from 0 to ¼ percent. The Committee directs the Desk to complete the execution of its purchases of about $1.25 trillion of agency MBS and of about $175 billion in housing-related agency debt by the end of March. The Committee directs the Desk to engage in dollar roll transactions as necessary to facilitate settlement of the Federal Reserve's agency MBS transactions. The System Open Market Account Manager and the Secretary will keep the Committee informed of ongoing developments regarding the System's balance sheet that could affect the attainment over time of the Committee's objectives of maximum employment and price stability.

[Note: In the April 2010 FOMC Directive Alternatives, strong emphasis (bold) indicates bold red underlined text in the original document.]

April 2010 FOMC Directive -- Alternative A

The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability and promote sustainable growth in output. To further its long-run objectives, the Committee seeks conditions in reserve markets consistent with federal funds trading in a range from 0 to ¼ percent. The Committee directs the Desk to engage in dollar roll transactions as necessary to facilitate settlement of the Federal Reserve's agency MBS transactions. [To gradually reduce the size of the Federal Reserve's balance sheet and return it to a more normal composition over time, the Committee directs the Desk to not reinvest the proceeds of maturing agency debt and payments on mortgage-backed securities held by the System Open Market Account.] The System Open Market Account Manager and the Secretary will keep the Committee informed of ongoing developments regarding the System's balance sheet that could affect the attainment over time of the Committee's objectives of maximum employment and price stability.

April 2010 FOMC Directive -- Alternative B

The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability and promote sustainable growth in output. To further its long-run objectives, the Committee seeks conditions in reserve markets consistent with federal funds trading in a range from 0 to ¼ percent. The Committee directs the Desk to engage in dollar roll transactions as necessary to facilitate settlement of the Federal Reserve's agency MBS transactions. [To gradually reduce the size of the Federal Reserve's balance sheet and return it to a more normal composition over time, the Committee directs the Desk to not reinvest the proceeds of maturing agency debt and payments on mortgage-backed securities held by the System Open Market Account. OR To gradually reduce the size of the Federal Reserve's balance sheet over time, the Committee directs the Desk to not reinvest the proceeds of maturing Treasury and agency debt and payments on mortgage-backed securities held by the System Open Market Account.] The System Open Market Account Manager and the Secretary will keep the Committee informed of ongoing developments regarding the System's balance sheet that could affect the attainment over time of the Committee's objectives of maximum employment and price stability.

April 2010 FOMC Directive -- Alternative C

The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability and promote sustainable growth in output. To further its long-run objectives, the Committee seeks conditions in reserve markets consistent with federal funds trading in a range from 0 to ¼ percent. The Committee directs the Desk to engage in dollar roll transactions as necessary to facilitate settlement of the Federal Reserve's agency MBS transactions. To gradually reduce the size of the Federal Reserve's balance sheet over time, the Committee directs the Desk to not reinvest the proceeds of maturing Treasury and agency debt and payments on mortgage-backed securities held by the System Open Market Account. The System Open Market Account Manager and the Secretary will keep the Committee informed of ongoing developments regarding the System's balance sheet that could affect the attainment over time of the Committee's objectives of maximum employment and price stability.

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