It is also worth pointing out that downward pressure on the price of «paper» gold that was not supported by the «physical» market would inevitably result in the price of «paper» gold making a sustained and
substantial move below the price of the physical commodity, which hasn't happened.
Mishkin noted «I am less optimistic about the prospects for core PCE inflation to
move much
below 2 % in the absence of a determined effort by monetary policy,» adding that «a
substantial further decline in inflation would require a shift in expectations, and such a shift could be difficult and time - consuming to bring about.»