FOMC statement from Aug. 12 meeting
Enviado: 12/8/2003 19:29Reuters
FOMC statement from Aug. 12 meeting
Tuesday August 12, 2:14 pm ET
WASHINGTON, Aug 12 (Reuters) - Following is the Federal Open Market
Committee's (News - Websites) statement on interest rate policy issued at the close of its
meeting on Tuesday:
"The Federal Open Market Committee decided today to keep its target for the
federal funds rate at 1 percent.
The Committee continues to believe that an accommodative stance of monetary
policy, coupled with still-robust underlying growth in productivity, is
providing important ongoing support to economic activity. The evidence
accumulated over the intermeeting period shows that spending is firming,
although labor market indicators are mixed. Business pricing power and
increases in core consumer prices remain muted.
The Committee perceives that the upside and downside risks to the attainment of
sustainable growth for the next few quarters are roughly equal. In contrast,
the probability, though minor, of an unwelcome fall in inflation exceeds that
of a rise in inflation from its already low level. The Committee judges that,
on balance, the risk of inflation becoming undesirably low is likely to be the
predominant concern for the foreseeable future. In these circumstances, the
Committee believes that policy accommodation can be maintained for a
considerable period.
Voting for the FOMC (News - Websites)monetary policy action were: Alan Greenspan (News), Chairman; Ben
S. Bernanke; Susan S. Bies; J. Alfred Broaddus, Jr.; Roger W. Ferguson, Jr.;
Edward M. Gramlich; Jack Guynn; Donald L. Kohn; Michael H. Moskow; Mark W.
Olson; Robert T. Parry; and Jamie B. Stewart, Jr."
FOMC statement from Aug. 12 meeting
Tuesday August 12, 2:14 pm ET
WASHINGTON, Aug 12 (Reuters) - Following is the Federal Open Market
Committee's (News - Websites) statement on interest rate policy issued at the close of its
meeting on Tuesday:
"The Federal Open Market Committee decided today to keep its target for the
federal funds rate at 1 percent.
The Committee continues to believe that an accommodative stance of monetary
policy, coupled with still-robust underlying growth in productivity, is
providing important ongoing support to economic activity. The evidence
accumulated over the intermeeting period shows that spending is firming,
although labor market indicators are mixed. Business pricing power and
increases in core consumer prices remain muted.
The Committee perceives that the upside and downside risks to the attainment of
sustainable growth for the next few quarters are roughly equal. In contrast,
the probability, though minor, of an unwelcome fall in inflation exceeds that
of a rise in inflation from its already low level. The Committee judges that,
on balance, the risk of inflation becoming undesirably low is likely to be the
predominant concern for the foreseeable future. In these circumstances, the
Committee believes that policy accommodation can be maintained for a
considerable period.
Voting for the FOMC (News - Websites)monetary policy action were: Alan Greenspan (News), Chairman; Ben
S. Bernanke; Susan S. Bies; J. Alfred Broaddus, Jr.; Roger W. Ferguson, Jr.;
Edward M. Gramlich; Jack Guynn; Donald L. Kohn; Michael H. Moskow; Mark W.
Olson; Robert T. Parry; and Jamie B. Stewart, Jr."