Chairman explains different monetary policy tools work through different transmission mechanisms; rejects fine-tuning demand.

But we're doing considerably less well on prices. That's why we describe them as elevated and that's what's taken most of our discussion. In terms of transmission mechanisms of monetary policy, I think different tools work through different transmission mechanisms, the interest rates work through lending channels and credit channels, maybe conference channels and foreign exchange. The balance sheet probably works through some other channels like signaling and portfolio balance. We're keeping full abreast of all these tools and making policy. But if the suggestion is somehow we're going to be fine-tuning aggregate demand so it catches supply, that's not my mental model. I don't think we're great in the fine-tuning business.