FOMC statement of January 22, 2008
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 unscheduled statement on January 22, 2008 (January 21 Conference Call - 2008). Compared with the previous scheduled statement of December 11, 2007: 5 sentences changed, 6 were added, 6 were removed, and 0 stayed the same. In words: 124 added, 148 removed. The vote on this statement: 1 member voted against: William Poole. On the December 11, 2007 statement: 1 member voted against: Eric S. Rosengren.
An unscheduled statement (Fed calendar: “January 21 Conference Call - 2008”). It is compared with the previous scheduled statement, so many sentences can look changed because the format differs. The comparison with the statement right before it is further down.
FOMC statement · January 22, 2008
Changed sentences against the previous scheduled statement (December 11, 2007)
0 unchanged · 5 changed · 6 added · 6 removed · words +124 / −148
- December 11, 2007
- 1 member voted against: Eric S. Rosengren.
- January 22, 2008
- 1 member voted against: William Poole.
The Federal Open Market Committee has decided today to lower its target for the federal funds rate 25 75 basis points to 4-1/4 3-1/2 percent.
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 actions taken earlier, should help promote moderate growth over time.
Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, among other factors, may put upward pressure on inflation.
The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth.
While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households.
Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.
In this context, The Committee judges that some expects inflation risks remain to moderate in coming quarters, and but it will be necessary to continue to monitor inflation developments carefully.
Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation.
Appreciable downside risks to growth remain.
The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to foster price stability and sustainable economic growth address those risks.
Voting against was Eric S. Rosengren, who preferred to lower the target for the federal funds rate by 50 basis points at this meeting.
Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week.
Absent and not voting was Frederic S. Mishkin.
In a related action, the Board of Governors unanimously approved a 25-basis-point 75-basis-point decrease in the discount rate to 4-3/4 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 Minneapolis.Louis.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · December 11, 2007
Compared with the statement right before it (December 11, 2007)
FOMC statement · January 22, 2008
Changed sentences against the previous statement (December 11, 2007)
0 unchanged · 5 changed · 6 added · 6 removed · words +124 / −148
- December 11, 2007
- 1 member voted against: Eric S. Rosengren.
- January 22, 2008
- 1 member voted against: William Poole.
The Federal Open Market Committee has decided today to lower its target for the federal funds rate 25 75 basis points to 4-1/4 3-1/2 percent.
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 actions taken earlier, should help promote moderate growth over time.
Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, among other factors, may put upward pressure on inflation.
The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth.
While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households.
Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.
In this context, The Committee judges that some expects inflation risks remain to moderate in coming quarters, and but it will be necessary to continue to monitor inflation developments carefully.
Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation.
Appreciable downside risks to growth remain.
The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to foster price stability and sustainable economic growth address those risks.
Voting against was Eric S. Rosengren, who preferred to lower the target for the federal funds rate by 50 basis points at this meeting.
Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week.
Absent and not voting was Frederic S. Mishkin.
In a related action, the Board of Governors unanimously approved a 25-basis-point 75-basis-point decrease in the discount rate to 4-3/4 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 Minneapolis.Louis.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · December 11, 2007
How to read this page
The page sets this statement of the Federal Open Market Committee next to the scheduled statement before it, sentence by sentence. The Fed’s sentences are shown as published, in English.
In a changed sentence, the words that were dropped are struck through and the new words are underlined. A sentence found only in the newer statement is marked as added; one found only in the older statement, as removed. Sentences that did not change are collapsed.
The counts say how many sentences fall into each of those groups, and how many words were added and removed. They count edits; they do not weigh them.
The vote lines show how the Committee voted on each statement and who voted against, as the statement itself reports it.
The comparison is made by a fixed rule, not by a model, and it reads nothing into the text.
The Fed’s text is shown in its original English and is not translated. This page only shows what changed in the text; it is not a reading of direction, tone or risk, and it is not part of the MVIE score. MVIE Pro is independent research and is not affiliated with the Federal Reserve.