FOMC statement of June 25, 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 June 25, 2008. Compared with the previous scheduled statement of April 30, 2008: 5 sentences changed, 4 were added, 7 were removed, and 1 stayed the same. In words: 105 added, 164 removed. The vote on this statement: 1 member voted against: Richard W. Fisher. On the April 30, 2008 statement: 2 members voted against: Richard W. Fisher, Charles I. Plosser.
FOMC statement · June 25, 2008
Changed sentences against the previous scheduled statement (April 30, 2008)
1 unchanged · 5 changed · 4 added · 7 removed · words +105 / −164
- April 30, 2008
- 2 members voted against: Richard W. Fisher, Charles I. Plosser.
- June 25, 2008
- 1 member voted against: Richard W. Fisher.
The Federal Open Market Committee decided today to lower keep its target for the federal funds rate 25 basis points to at 2 percent.
Recent information indicates that overall economic activity remains weak continues to expand, partly reflecting some firming in household spending.
Household and business spending has been subdued and labor markets have softened further.
However, labor markets have softened further and financial markets remain under considerable stress.
Financial markets remain under considerable stress, and Tight credit conditions, the ongoing housing contraction, and the deepening housing contraction rise in energy prices are likely to weigh on economic growth over the next few quarters.
Although readings on core inflation have improved somewhat, energy and other commodity prices have increased, and some indicators of inflation expectations have risen in recent months.
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 remains high.
It will be necessary to continue to monitor inflation developments carefully.
The Committee expects inflation to moderate later this year and next year.
However, in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high.
The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time and to mitigate risks to economic activity.
Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased.
Voting against were was Richard W. Fisher and Charles I. Plosser, who preferred no change an increase in the target for the federal funds rate at this meeting.
In a related action, the Board of Governors unanimously approved a 25-basis-point decrease in the discount rate to 2-1/4 percent.
In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Cleveland, Atlanta, and San Francisco.
Show the unchanged sentence
The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · April 30, 2008
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