I think monetary policy coming out of the 2001 recession did what it was intended to do, which was cushion the interest-sensitive sectors of the economy, including housing.

Over the period ahead, as the full effects of the sequence of monetary policy moves plays out, I expect that output growth will settle on a path that is somewhat below what we saw in the first quarter, probably growing at close to the economy's potential.

We don't yet know the full economic effect of the policy moves we have already made. In the months ahead, we'll have to watch the data very carefully to make sure that growth is still on track and inflation expectations are well anchored.

Monetary policy is not a panacea.

Domestic inflation reflects domestic monetary policy.

A good monetary policy follows inflationary expectations and not historical numbers.