The President of the Richmond Fed argues that: [1] price stability ought to be the overriding goal of monetary policy; [2] procedures for controlling the money supply need to be improved; and [3] monetary policy must be prepared to respond promptly to inflationary pressures.

The Federal Reserve System is faced with a myriad of objectives in the area of monetary policy: some people believe the Fed should use monetary policy to keep interest rates low, other think the primary goal should be to increase business activity and decrease unemployment, and still others feel...

Testimony by the President of the Federal Reserve Bank of Richmond in support of House Joint Resolution 409. That bill, sponsored by Rep. Stephen Neal (D-NC) would require the Federal Reserve to achieve zero inflation within five years of passage.

Inflation remains a potential longer-run threat to the health of the economy despite the progress made in reducing the inflation rate in recent years. The Fed must have a credible strategy in place to meet this threat. As Richmond Fed president Robert P. Black notes in this speech to business...

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