FOMC statement of October 31, 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 October 31, 2007. Compared with the previous scheduled statement of September 18, 2007: 6 sentences changed, 5 were added, 3 were removed, and 0 stayed the same. In words: 123 added, 74 removed. The vote on this statement: 1 member voted against: Thomas M. Hoenig. On the September 18, 2007 statement: Unanimous.
FOMC statement · October 31, 2007
Changed sentences against the previous scheduled statement (September 18, 2007)
0 unchanged · 6 changed · 5 added · 3 removed · words +123 / −74
- September 18, 2007
- Unanimous.
- October 31, 2007
- 1 member voted against: Thomas M. Hoenig.
The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 25 basis points to 4-3/4 4-1/2 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.
Economic growth was solid in the third quarter, and strains in financial markets have eased somewhat on balance.
However, the pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction.
Today's action is intended to , combined with the policy action taken in September, should 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 this year.
Readings on core inflation have improved modestly this year, but recent increases in energy and commodity prices, among other factors, may put renewed upward pressure on inflation.
However In this context, 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 judges that, after this action, the upside risks to inflation roughly balance the downside risks to growth.
The Committee will continue to assess the effects of these financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.
Voting against was Thomas M. Hoenig, who preferred no change in the federal funds rate at this meeting.
In a related action, the Board of Governors unanimously approved a 50-basis-point 25-basis-point decrease in the discount rate to 5-1/4 5 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 Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, and San Francisco.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · September 18, 2007
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