FOMC statement of April 28, 2010
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 28, 2010. Compared with the previous scheduled statement of March 16, 2010: 6 sentences changed, 1 was added, 2 were removed, and 5 stayed the same. In words: 52 added, 88 removed. The vote on this statement: 1 member voted against: Thomas M. Hoenig. On the March 16, 2010 statement: 1 member voted against: Thomas M. Hoenig.
FOMC statement · April 28, 2010
Changed sentences against the previous scheduled statement (March 16, 2010)
5 unchanged · 6 changed · 1 added · 2 removed · words +52 / −88
- March 16, 2010
- 1 member voted against: Thomas M. Hoenig.
- April 28, 2010
- 1 member voted against: Thomas M. Hoenig.
Information received since the Federal Open Market Committee met in January March suggests that economic activity has continued to strengthen and that the labor market is stabilizing beginning to improve.
Growth in household spending is expanding at a moderate rate has picked up recently but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.
Business spending on equipment and software has risen significantly.
Business spending on equipment and software has risen significantly; however, investment in nonresidential structures is declining , housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls.
To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve has been purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt; those purchases are nearing completion, and the remaining transactions will be executed by the end of this month.
Housing starts have edged up but remain at a depressed level.
In light of improved functioning of financial markets, the Federal Reserve has been closing closed all but one of the special liquidity facilities that it created to support markets during the crisis.
The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close on June 30 for loans backed by new-issue commercial mortgage-backed securities and ; it closed on March 31 for loans backed by all other types of collateral.
Voting against the policy action was Thomas M. Hoenig, who believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted because it could lead to the buildup a build-up of financial future imbalances and increase risks to longer-run longer run macroeconomic and financial stability, while limiting the Committee's flexibility to begin raising rates modestly.
Show the 5 unchanged sentences
While bank lending continues to contract, financial market conditions remain supportive of economic growth.
Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability.
With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time.
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.
The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · March 16, 2010
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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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