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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.
Changed

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.

Removed

Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending.

Removed

Moreover, strains in financial markets have increased in recent weeks.

Removed

Today's action, combined with the policy actions taken earlier, should help promote moderate growth over time.

Removed

Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, among other factors, may put upward pressure on inflation.

Added

Financial markets remain under considerable stress, and credit has tightened further for some businesses and households.

Added

Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.

Changed

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.

Removed

Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation.

Added

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.

Added

However, downside risks to growth remain.

Changed

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.

Changed

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.

Changed

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.

Changed

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

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.