FOMC statement of January 26, 2011
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 January 26, 2011. Compared with the previous scheduled statement of December 14, 2010: 5 sentences changed, 0 were added, 3 were removed, and 9 stayed the same. In words: 41 added, 100 removed. The vote on this statement: Unanimous. On the December 14, 2010 statement: 1 member voted against: Thomas M. Hoenig.
FOMC statement · January 26, 2011
Changed sentences against the previous scheduled statement (December 14, 2010)
9 unchanged · 5 changed · 0 added · 3 removed · words +41 / −100
- December 14, 2010
- 1 member voted against: Thomas M. Hoenig.
- January 26, 2011
- Unanimous.
Information received since the Federal Open Market Committee met in November December confirms that the economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment about a significant improvement in labor market conditions.
Growth in household spending is increasing at a moderate pace picked up late last year, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.
Business spending on equipment and software is rising, though less rapidly than earlier in the year, while investment in nonresidential structures continues to be is still weak.
Although commodity prices have risen, longer-term inflation expectations have remained stable, but and measures of underlying inflation have continued to trend been trending downward.
The Committee will maintain its existing policy of reinvesting principal payments from its securities holdings.
In addition particular, the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and intends to purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month.
Voting against the policy was Thomas M. Hoenig.
In light of the improving economy, Mr. Hoenig was concerned that a continued high level of monetary accommodation 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.
Show the 9 unchanged sentences
Employers remain reluctant to add to payrolls.
The housing sector continues to be depressed.
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.
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 continue expanding its holdings of securities as announced in November.
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.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · December 14, 2010
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