FOMC statement of August 10, 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 August 10, 2010. Compared with the previous scheduled statement of June 23, 2010: 6 sentences changed, 5 were added, 3 were removed, and 3 stayed the same. In words: 186 added, 96 removed. The vote on this statement: 1 member voted against: Thomas M. Hoenig. On the June 23, 2010 statement: 1 member voted against: Thomas M. Hoenig.
FOMC statement · August 10, 2010
Changed sentences against the previous scheduled statement (June 23, 2010)
3 unchanged · 6 changed · 5 added · 3 removed · words +186 / −96
- June 23, 2010
- 1 member voted against: Thomas M. Hoenig.
- August 10, 2010
- 1 member voted against: Thomas M. Hoenig.
Information received since the Federal Open Market Committee met in April suggests June indicates that the economic pace of recovery is proceeding in output and that the labor market is improving gradually employment has slowed in recent months.
Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.
Business spending on equipment and software has risen significantly is rising; however, investment in nonresidential structures continues to be weak and employers remain reluctant to add to payrolls.
Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad.
Bank lending has continued to contract in recent months.
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 more modest in the near term than had been anticipated.
Prices of energy and other commodities have declined somewhat in recent months, and underlying inflation has trended lower.
Measures of underlying inflation have trended lower in recent quarters and, with substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time.
To help support the economic recovery in a context of price stability, the Committee will keep constant the Federal Reserve's holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities.
1 The Committee will continue to roll over the Federal Reserve's holdings of Treasury securities as they mature.
Voting against the policy was Thomas M. Hoenig, who judges that the economy is recovering modestly, as projected.
Voting against the policy action was Thomas M. Hoenig Accordingly, who he 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 macroeconomic and financial stability, while limiting limits the Committee's flexibility ability to begin raising rates modestly adjust policy when needed.
In addition, given economic and financial conditions, Mr. Hoenig did not believe that keeping constant the size of the Federal Reserve's holdings of longer-term securities at their current level was required to support a return to the Committee's policy objectives.
The Open Market Desk will issue a technical note shortly after the statement providing operational details on how it will carry out these transactions.
Show the 3 unchanged sentences
Housing starts remain at a depressed level.
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 · June 23, 2010
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.