FOMC statement of September 18, 2007
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 September 18, 2007. Compared with the previous scheduled statement of August 7, 2007: 3 sentences changed, 6 were added, 6 were removed, and 0 stayed the same. In words: 180 added, 130 removed. The vote on this statement: Unanimous. On the August 7, 2007 statement: Unanimous.
FOMC statement · September 18, 2007
Changed sentences against the previous scheduled statement (August 7, 2007)
Unscheduled statements this comparison skips: August 17, 2007
0 unchanged · 3 changed · 6 added · 6 removed · words +180 / −130
- August 7, 2007
- Unanimous.
- September 18, 2007
- Unanimous.
The Federal Open Market Committee decided today to keep lower its target for the federal funds rate at 5-1/4 50 basis points to 4-3/4 percent.
Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally.
Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing.
Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.
Today's action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.
Readings on core inflation have improved modestly in recent months this year.
However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated.
Moreover, the high level of resource utilization has the potential to sustain those pressures.
Although the downside risks to growth have increased somewhat, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected.
Future policy adjustments will depend on the outlook for both inflation and economic growth, as implied by incoming information.
However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.
Developments in financial markets since the Committee's last regular meeting have increased the uncertainty surrounding the economic outlook.
The Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.
In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 5-1/4 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, Cleveland, St. Louis, Minneapolis, Kansas City, and San Francisco.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · August 7, 2007
How to read this page
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