Achieving price stability is not only important in itself, it is also central to attaining the Federal Reserve's other mandate objectives of maximum sustainable employment and moderate long-term interest rates.

The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.

The central bank needs to be able to make policy without short term political concerns.

The GSEs are adequately capitalized. They are in no danger of failing.

Over the years, the U.S. economy has shown a remarkable ability to absorb shocks of all kinds, to recover, and to continue to grow.

The Fed is totally open.

It is not the responsibility of the Federal Bank - nor would it be appropriate - to protect lenders and investors from the consequences of their decisions