Maintaining inflation stability is the central responsibility of the central bank. But we don't want to be in the situation of over-reacting and driving the economy down,

Our aim is to keep inflation, in general, down. If I had to pick a point, it is to keep these broad measures in a one to two percent range.

The key point is the stability and declining trend in core inflation. The central bank isn't going to conduct monetary policy based on agricultural prices.

I see no reason why we should not see a similarly benign inflation outcome this year,

The Fed has and must have a commitment to price stability. The uncertainties on the upside (for inflation) have only gotten bigger since Katrina slammed into the Gulf Coast,

The Fed has and must have a commitment to price stability, ... The uncertainties on the upside (for inflation) have only gotten bigger since Katrina slammed into the Gulf Coast.