Prior discussion:
speaker: MR. WILLES.
text: But on average monetary policy is probably less disruptive if it is more predictable than otherwise. As a consequence, it seems to us that the decision we made last fall was a wise one and we ought to stick to it. And we ought to be rigorously consistent about that because at least over time, as the markets come to understand that we are going to be rigorously consistent, we will reduce substantially not only the risk associated with our own policies but the over-reactions that the market sometimes makes to their perception of our policy. So, as others have said, if interest rates are going to go down, I think this is one time when we just ought to let them go down because we've got to make sure that we establish the credibility in the basic policy thrust that we've been following. 
speaker: CHAIRMAN VOLCKER.
text: Governor Schultz. 

MR. SCHULTZ. "Let's not panic and do something that will tend to negate the strides we've made."

Full utterance: Well, I certainly would agree that it is important that we continue with a course that strengthens our credibility. I believe we have made the right moves in going to a different kind of procedure. I think it's important that we hold to that 3-1/2 to 6 percent [Ml] figure for the year. But while I want interest rates to go down--I think it's important that they go down--I really am concerned about the speed with which they go down. We have to keep in mind that this is where the action is right now. The country is looking to the Federal Reserve. Like it or not, we are in the eye of the storm. And people look at interest rates. We've done a lot of things. If there's anything to be said for the whole credit control program--and in my view there's damn little--it's the shock effect. And it has had a shock effect. It was important. [Changing] inflationary expectations was crucial. Why did the actions we took on October 6th not work better? Because people thought [our actions] were just going to be overridden by other things that were happening. So we see interest rates at these awful levels. But people are looking at those interest rates; and if they see them come down too rapidly, they're going to say the Fed has given up [on inflation]. And we're all they have to look to at this point in time. Let's not panic and do something that will tend to negate the strides we've made. We're getting there and we're getting the job done. A fed funds rate of 15 to 16 percent wouldn't bother me much, but I must say that if it starts getting down around 13 percent or below, under these circumstances, I would get really nervous. As you know, we haven't been that good with our forecasts or projections. It does look as if this economy is weakening very rapidly and going off a cliff. But I would remind you that it looked pretty weak in October. It looked as if we had done the job then. Now, [the evidence] is stronger this time, and I feel pretty well convinced; but I don't see the necessity for letting interest rates just absolutely also fall off the cliff. I think the implications of that are very important. We can do something here which says we will stay within the target ranges, but let's not panic on these interest rates. I'd let them come down slowly. I hope we can hold these fed funds rates; I think they're important. I like our new operating procedure but interest rates, whether we like it or not, are a perception that other people have. And I hope we don't get in too much of a hurry and blow this.

Opinion: yes
About monetary policy: yes
Stance toward easing (NLI): contradiction