FOMC statement of November 4, 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 November 4, 2009. Compared with the previous scheduled statement of September 23, 2009: 6 sentences changed, 2 were added, 1 was removed, and 6 stayed the same. In words: 90 added, 52 removed. The vote on this statement: Unanimous. On the September 23, 2009 statement: Unanimous.
FOMC statement · November 4, 2009
Changed sentences against the previous scheduled statement (September 23, 2009)
6 unchanged · 6 changed · 2 added · 1 removed · words +90 / −52
- September 23, 2009
- Unanimous.
- November 4, 2009
- Unanimous.
Information received since the Federal Open Market Committee met in August September suggests that economic activity has picked continued to pick up following its severe downturn.
Conditions in financial markets were roughly unchanged, on balance, over the intermeeting period.
Conditions in financial markets have improved further, and Activity in the housing sector has increased over recent months.
Household spending seems appears to be stabilizing, expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit.
The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.
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 $1.25 trillion of agency mortgage-backed securities and up to about $200 175 billion of agency debt.
The amount of agency debt purchases, while somewhat less than the previously announced maximum of $200 billion, is consistent with the recent path of purchases and reflects the limited availability of agency debt.
The Committee will gradually slow the pace of these purchases In order to promote a smooth transition in markets, the Committee will gradually slow the pace of its purchases of both agency debt and agency mortgage-backed securities and anticipates that they these transactions will be executed by the end of the first quarter of 2010.
As previously announced, the Federal Reserve's purchases of $300 billion of Treasury securities will be completed by the end of October 2009.
Show the 6 unchanged sentences
Businesses are still cutting back on fixed investment and staffing, though at a slower pace; they continue to make progress in bringing inventory stocks into better alignment with sales.
Although economic activity is likely to remain weak for a time, the Committee anticipates that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will support a strengthening of economic growth and a gradual return to higher levels of resource utilization in a context of price stability.
With substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the Committee expects that inflation will remain subdued for some time.
In these circumstances, the Federal Reserve will continue to employ a wide range of tools to promote economic recovery and to preserve price stability.
The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets.
The Federal Reserve is monitoring the size and composition of its balance sheet and will make adjustments to its credit and liquidity programs as warranted.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · September 23, 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.
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.