FOMC statement of August 8, 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 August 8, 2006. Compared with the previous scheduled statement of June 29, 2006: 4 sentences changed, 2 were added, 5 were removed, and 1 stayed the same. In words: 66 added, 132 removed. The vote on this statement: 1 member voted against: Jeffrey M. Lacker. On the June 29, 2006 statement: Unanimous.
FOMC statement · August 8, 2006
Changed sentences against the previous scheduled statement (June 29, 2006)
1 unchanged · 4 changed · 2 added · 5 removed · words +66 / −132
- June 29, 2006
- Unanimous.
- August 8, 2006
- 1 member voted against: Jeffrey M. Lacker.
The Federal Open Market Committee decided today to raise keep its target for the federal funds rate by 25 basis points to at 5-1/4 percent.
Recent indicators suggest that Economic growth is moderating has moderated 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.
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.
However Readings on core inflation have been elevated in recent months, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures.
However, inflation pressures seem likely to moderate over time, reflecting contained inflation expectations and the cumulative effects of monetary policy actions and other factors restraining aggregate demand.
Although the moderation in the growth of aggregate demand should help to limit inflation pressures over time Nonetheless, the Committee judges that some inflation risks remain.
In any event, the Committee will respond to changes in economic prospects as needed to 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 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.
Voting against was Jeffrey M. Lacker, who preferred an increase of 25 basis points in the federal funds rate target at this meeting.
Show the unchanged sentence
The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · June 29, 2006
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