FOMC statement of May 10, 2006
This statement of the Federal Open Market Committee, compared sentence by sentence with the scheduled statement before it: what changed in the text, and how the Committee voted.
In short
The Federal Open Market Committee released this statement on May 10, 2006. Compared with the previous scheduled statement of March 28, 2006: 3 sentences changed, 3 were added, 3 were removed, and 3 stayed the same. In words: 94 added, 75 removed. The vote on this statement: Unanimous. On the March 28, 2006 statement: Unanimous.
FOMC statement · May 10, 2006
Changed sentences against the previous scheduled statement (March 28, 2006)
3 unchanged · 3 changed · 3 added · 3 removed · words +94 / −75
- March 28, 2006
- Unanimous.
- May 10, 2006
- Unanimous.
The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 4-3/4 5 percent.
The slowing of the growth of real GDP in the fourth quarter of 2005 seems largely to have reflected temporary or special factors.
Economic growth has rebounded strongly in the current quarter but appears likely to moderate to a more sustainable pace.
The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance.
Economic growth has been quite strong so far this year.
The Committee sees growth as likely to moderate to a more sustainable pace, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices.
The Committee judges that some further policy firming may yet be needed to address inflation risks but emphasizes that the extent and timing of any such firming will depend importantly on the evolution of the economic outlook as implied by incoming information.
In any event, the Committee will respond to changes in economic prospects as needed to foster these support the attainment of its objectives.
In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 5-3/4 6 percent.
Show the 3 unchanged sentences
As yet, the run-up in the prices of energy and other commodities appears to have had only a modest effect on core inflation, ongoing productivity gains have helped to hold the growth of unit labor costs in check, and inflation expectations remain contained.
Still, possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures.
In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Dallas, and San Francisco.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · March 28, 2006
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The page sets this statement of the Federal Open Market Committee next to the scheduled statement before it, sentence by sentence. The Fed’s sentences are shown as published, in English.
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