FOMC statement of December 14, 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 December 14, 2010. Compared with the previous scheduled statement of November 3, 2010: 7 sentences changed, 0 were added, 2 were removed, and 10 stayed the same. In words: 43 added, 44 removed. The vote on this statement: 1 member voted against: Thomas M. Hoenig. On the November 3, 2010 statement: 1 member voted against: Thomas M. Hoenig.
FOMC statement · December 14, 2010
Changed sentences against the previous scheduled statement (November 3, 2010)
10 unchanged · 7 changed · 0 added · 2 removed · words +43 / −44
- November 3, 2010
- 1 member voted against: Thomas M. Hoenig.
- December 14, 2010
- 1 member voted against: Thomas M. Hoenig.
Information received since the Federal Open Market Committee met in September November confirms that the pace of economic recovery in output and employment continues is continuing, though at a rate that has been insufficient to be slow bring down unemployment.
Household spending is increasing gradually at a moderate pace, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.
The housing starts continue sector continues to be depressed.
Longer-term inflation expectations have remained stable, but measures of underlying inflation have trended lower in recent quarters continued to trend downward.
To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to expand continue expanding its holdings of securities as announced in November.
In addition, the Committee intends to purchase a further $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month.
Mr. Hoenig believed the risks of additional securities purchases outweighed the benefits.
In light of the improving economy, Mr. Hoenig also was concerned that this a continued high level of monetary accommodation increased would increase the risks of future economic and financial imbalances and, over time, would cause an increase in long-term inflation expectations that could destabilize the economy.
Statement from Federal Reserve Bank of New York
Show the 10 unchanged sentences
Business spending on equipment and software is rising, though less rapidly than earlier in the year, while investment in nonresidential structures continues to be weak.
Employers remain reluctant to add to payrolls.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
Currently, the unemployment rate is elevated, and measures of underlying inflation are somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate.
Although the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, progress toward its objectives has been disappointingly slow.
The Committee will maintain its existing policy of reinvesting principal payments from its securities holdings.
The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability.
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 for 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 support the economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.
Voting against the policy was Thomas M. Hoenig.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · November 3, 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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