FOMC statement of March 18, 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 March 18, 2008. Compared with the previous scheduled statement of January 30, 2008: 6 sentences changed, 7 were added, 3 were removed, and 1 stayed the same. In words: 137 added, 96 removed. The vote on this statement: 2 members voted against: Richard W. Fisher, Charles I. Plosser. On the January 30, 2008 statement: 1 member voted against: Richard W. Fisher.
FOMC statement · March 18, 2008
Changed sentences against the previous scheduled statement (January 30, 2008)
1 unchanged · 6 changed · 7 added · 3 removed · words +137 / −96
- January 30, 2008
- 1 member voted against: Richard W. Fisher.
- March 18, 2008
- 2 members voted against: Richard W. Fisher, Charles I. Plosser.
The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 75 basis points to 3 2-1/4 percent.
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.
Recent information indicates that the outlook for economic activity has weakened further.
Growth in consumer spending has slowed and labor markets have softened.
Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters.
Inflation has been elevated, and some indicators of inflation expectations have risen.
The Committee expects inflation to moderate in coming quarters, reflecting a projected leveling-out of energy and other commodity prices and an easing of pressures on resource utilization.
Still, uncertainty about the inflation outlook has increased.
The Committee expects inflation to moderate in coming quarters, but It will be necessary to continue to monitor inflation developments carefully.
Today's policy action, combined with those taken earlier, including measures to foster market liquidity, should help to promote moderate growth over time and to mitigate the risks to economic activity.
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 address those risks.
The Committee will act in a timely manner as needed to promote sustainable economic growth and price stability.
Voting against was were Richard W. Fisher and Charles I. Plosser, who preferred no change in the target for the federal funds rate less aggressive action at this meeting.
In a related action, the Board of Governors unanimously approved a 50-basis-point 75-basis-point decrease in the discount rate to 3-1/2 2-1/2 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, Atlanta, Chicago, St. Louis, Kansas City, and San Francisco.
Show the unchanged sentence
However, downside risks to growth remain.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · January 30, 2008
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