FOMC statement of June 23, 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 June 23, 2010. Compared with the previous scheduled statement of April 28, 2010: 6 sentences changed, 3 were added, 3 were removed, and 3 stayed the same. In words: 71 added, 121 removed. The vote on this statement: 1 member voted against: Thomas M. Hoenig. On the April 28, 2010 statement: 1 member voted against: Thomas M. Hoenig.
FOMC statement · June 23, 2010
Changed sentences against the previous scheduled statement (April 28, 2010)
3 unchanged · 6 changed · 3 added · 3 removed · words +71 / −121
- April 28, 2010
- 1 member voted against: Thomas M. Hoenig.
- June 23, 2010
- 1 member voted against: Thomas M. Hoenig.
Information received since the Federal Open Market Committee met in March April suggests that the economic activity has continued to strengthen recovery is proceeding and that the labor market is beginning to improve improving gradually.
Growth in Household spending has picked up recently is increasing but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.
Business spending on equipment and software has risen significantly; however, investment in nonresidential structures is declining continues to be weak and employers remain reluctant to add to payrolls.
Housing starts have edged up but remain at a depressed level.
While bank lending continues to contract, financial market conditions remain supportive of economic growth.
Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad.
Bank lending has continued to contract in recent months.
Although the pace of economic recovery is likely to be moderate for a time Nonetheless, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be moderate for a time.
In light of improved functioning of financial markets, the Federal Reserve has 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; it closed on March 31 for loans backed by all other types of collateral.
Prices of energy and other commodities have declined somewhat in recent months, and underlying inflation has trended lower.
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 a build-up of 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 3 unchanged sentences
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 · April 28, 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.
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