FOMC statement of January 30, 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 statement on January 30, 2008. Compared with the previous scheduled statement of December 11, 2007: 6 sentences changed, 4 were added, 5 were removed, and 0 stayed the same. In words: 97 added, 125 removed. The vote on this statement: 1 member voted against: Richard W. Fisher. On the December 11, 2007 statement: 1 member voted against: Eric S. Rosengren.
FOMC statement · January 30, 2008
Changed sentences against the previous scheduled statement (December 11, 2007)
Unscheduled statements this comparison skips: January 22, 2008
0 unchanged · 6 changed · 4 added · 5 removed · words +97 / −125
- December 11, 2007
- 1 member voted against: Eric S. Rosengren.
- January 30, 2008
- 1 member voted against: Richard W. Fisher.
The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 50 basis points to 4-1/4 3 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.
Financial markets remain under considerable stress, and credit has tightened further for some businesses and households.
Moreover, recent 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.
Today's policy action, combined with those taken earlier, should help to promote moderate growth over time and to mitigate the risks to economic activity.
However, 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 Richard W. Rosengren Fisher, who preferred to lower no change in 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 50-basis-point decrease in the discount rate to 4-3/4 3-1/2 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, and St. Louis, Kansas City, and San Francisco.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · December 11, 2007
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