Dallas Fed president foresees 'anemic' growth into 2009

Q: How do you respond to the argument that dissent shows a central bank that is fragmented and adds to confusion about the direction of interest rates?

A: I don't buy that. First of all, the majority rules. Secondly, it shows that we are having a discussion of the risks on both sides. My respect for (Fed Chairman) Ben Bernanke is enormous; he is an enormously clever man.

He stepped into this post as chairman at a very awkward time, and I admire him tremendously for how he has conducted himself. He encourages an open discussion.

Q: Is the worst over for housing?

A: When you correct for excess, you expect a severe correction. The amazing thing is the economy has held up despite this correction, and it is painfully severe.

I don't think it has fully run its course. Some people detect that it may be bottoming, I think it has a ways to go. It's obviously pulled the legs out from under the economy.

Q: Is this a tough time to be on the Fed?

A: It's enormously challenging and gratifying. This is a test for all of us, and there are a lot of people watching what we do. We are doing our level best to get it right.