FOMC statement of April 29, 2009
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 April 29, 2009. Compared with the previous scheduled statement of March 18, 2009: 4 sentences changed, 6 were added, 5 were removed, and 4 stayed the same. In words: 210 added, 204 removed. The vote on this statement: Unanimous. On the March 18, 2009 statement: Unanimous.
FOMC statement · April 29, 2009
Changed sentences against the previous scheduled statement (March 18, 2009)
4 unchanged · 4 changed · 6 added · 5 removed · words +210 / −204
- March 18, 2009
- Unanimous.
- April 29, 2009
- Unanimous.
Information received since the Federal Open Market Committee met in January March indicates that the economy continues has continued to contract, though the pace of contraction appears to be somewhat slower.
Job losses, declining equity and housing wealth, and tight credit conditions have weighed on consumer sentiment and spending.
Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit.
Weaker Weak sales prospects and difficulties in obtaining credit have led businesses to cut back on inventories and , fixed investment, and staffing.
U.S. exports have slumped as a number of major trading partners have also fallen into recession.
Although the economic outlook has improved modestly since the March meeting, partly reflecting some easing of financial market conditions, economic activity is likely to remain weak for a time.
Although the near-term economic outlook is weak Nonetheless, the Committee anticipates continues to anticipate that policy actions to stabilize financial markets and institutions, together with fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability.
To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserve's balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion.
Moreover, to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months.
The Federal Reserve has launched the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses and anticipates that the range of eligible collateral for this facility is likely to be expanded to include other financial assets.
As previously announced, to provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year.
In addition, the Federal Reserve will buy up to $300 billion of Treasury securities by autumn.
The Committee will continue to carefully monitor evaluate the size timing and composition overall amounts of the Federal Reserve's balance sheet its purchases of securities in light of the evolving economic outlook and conditions in financial and economic developments markets.
The Federal Reserve is facilitating the extension of credit to households and businesses and supporting the functioning of financial markets through a range of liquidity programs.
The Committee will continue to carefully monitor the size and composition of the Federal Reserve's balance sheet in light of financial and economic developments.
Show the 4 unchanged sentences
In light of increasing economic slack here and abroad, the Committee expects that inflation will remain subdued.
Moreover, the Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term.
In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability.
The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · March 18, 2009
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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