FOMC statement of October 29, 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 October 29, 2008. Compared with the previous scheduled statement of September 16, 2008: 1 sentence changed, 8 were added, 8 were removed, and 1 stayed the same. In words: 207 added, 144 removed. The vote on this statement: Unanimous. On the September 16, 2008 statement: Unanimous.
FOMC statement · October 29, 2008
Changed sentences against the previous scheduled statement (September 16, 2008)
1 unchanged · 1 changed · 8 added · 8 removed · words +207 / −144
- September 16, 2008
- Unanimous.
- October 29, 2008
- Unanimous.
The Federal Open Market Committee decided today to keep lower its target for the federal funds rate at 2 50 basis points to 1 percent.
Strains in financial markets have increased significantly and labor markets have weakened further.
Economic growth appears to have slowed recently, partly reflecting a softening of household spending.
Tight credit conditions, the ongoing housing contraction, and some slowing in export growth are likely to weigh on economic growth over the next few quarters.
Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth.
Inflation has been high, spurred by the earlier increases in the prices of energy and some other commodities.
The Committee expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain.
The downside risks to growth and the upside risks to inflation are both of significant concern to the Committee.
Ms. Cumming voted as the alternate for Timothy F. Geithner.
The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures.
Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports.
Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit.
In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate in coming quarters to levels consistent with price stability.
Recent policy actions, including today's rate reduction, coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth.
Nevertheless, downside risks to growth remain.
In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 1-1/4 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, Cleveland, and San Francisco.
Show the unchanged sentence
The Committee will monitor economic and financial developments carefully 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 · September 16, 2008
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.
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