While Rising Delinquencies And Foreclosures Will Continue

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.

In Fact, The World Needs More Nerds.

House Prices Have Risen By Nearly 25 Percent Over The Past Two Years. Although Speculative Activity Has Increased In Some Areas, At A National Level These Price Increases Largely Reflect Strong Economic Fundamentals.

I Served Seven Years As The Chair Of The Princeton Economics Department Where I Had Responsibility For Major Policy Decisions, Such As Whether To Serve Bagels Or Doughnuts At The Department Coffee Hour.

We Do Not Expect Significant Spillovers From The Subprime Market To The Rest Of The Economy Or To The Financial System.