FOMC statement of December 11, 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 December 11, 2007. Compared with the previous scheduled statement of October 31, 2007: 6 sentences changed, 3 were added, 3 were removed, and 2 stayed the same. In words: 74 added, 97 removed. The vote on this statement: 1 member voted against: Eric S. Rosengren. On the October 31, 2007 statement: 1 member voted against: Thomas M. Hoenig.
FOMC statement · December 11, 2007
Changed sentences against the previous scheduled statement (October 31, 2007)
2 unchanged · 6 changed · 3 added · 3 removed · words +74 / −97
- October 31, 2007
- 1 member voted against: Thomas M. Hoenig.
- December 11, 2007
- 1 member voted against: Eric S. Rosengren.
The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/2 4-1/4 percent.
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.
Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending.
Moreover, strains in financial markets have increased in recent weeks.
Today's action, combined with the policy action actions taken in September earlier, should help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and promote moderate growth over time.
Readings on core inflation have improved modestly this year, but recent increases in elevated energy and commodity prices, among other factors, may put renewed upward pressure on inflation.
The Committee judges that, after this action, the upside risks to inflation roughly balance the downside risks to growth.
Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation.
Voting against was Thomas M Eric S. Hoenig Rosengren, who preferred no change in to lower the target for the federal funds rate by 50 basis points at this meeting.
In a related action, the Board of Governors unanimously approved a 25-basis-point decrease in the discount rate to 5 4-3/4 percent.
In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, and St. Louis, and San Francisco.
Show the 2 unchanged sentences
In this context, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.
The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · October 31, 2007
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