FOMC statement of June 29, 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 June 29, 2006. Compared with the previous scheduled statement of May 10, 2006: 6 sentences changed, 3 were added, 2 were removed, and 1 stayed the same. In words: 92 added, 101 removed. The vote on this statement: Unanimous. On the May 10, 2006 statement: Unanimous.
FOMC statement · June 29, 2006
Changed sentences against the previous scheduled statement (May 10, 2006)
1 unchanged · 6 changed · 3 added · 2 removed · words +92 / −101
- May 10, 2006
- Unanimous.
- June 29, 2006
- Unanimous.
The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 5 5-1/4 percent.
Economic growth has been quite strong so far this year.
The Committee sees Recent indicators suggest that economic growth as likely to moderate to a more sustainable is moderating from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices.
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.
Readings on core inflation have been elevated in recent months.
Ongoing productivity gains have held down the rise in unit labor costs, and inflation expectations remain contained.
Still However, possible increases in the high levels of resource utilization , in combination with and of the elevated prices of energy and other commodities , have the potential to add to sustain inflation pressures.
Although the moderation in the growth of aggregate demand should help to limit inflation pressures over time, the Committee judges that some inflation risks remain.
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 additional firming that may be needed to address these risks will depend importantly on the evolution of the outlook for both inflation and economic outlook growth, as implied by incoming information.
In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 6 6-1/4 percent.
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, and Dallas, and San Francisco.
Show the unchanged sentence
In any event, the Committee will respond to changes in economic prospects as needed to support the attainment of its objectives.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · May 10, 2006
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