FOMC statement of June 22, 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 June 22, 2011. Compared with the previous scheduled statement of April 27, 2011: 5 sentences changed, 8 were added, 7 were removed, and 3 stayed the same. In words: 261 added, 267 removed. The vote on this statement: Unanimous. On the April 27, 2011 statement: Unanimous.
FOMC statement · June 22, 2011
Changed sentences against the previous scheduled statement (April 27, 2011)
3 unchanged · 5 changed · 8 added · 7 removed · words +261 / −267
- April 27, 2011
- Unanimous.
- June 22, 2011
- Unanimous.
Information received since the Federal Open Market Committee met in March April indicates that the economic recovery is proceeding continuing at a moderate pace and overall conditions in , though somewhat more slowly than the labor market are improving gradually Committee had expected.
Commodity prices have risen significantly since last summer, and concerns about global supplies of crude oil have contributed to a further increase in oil prices since the Committee met in March.
Inflation has picked up in recent months, but longer-term inflation expectations have remained stable and measures of underlying inflation are still subdued.
Also, recent labor market indicators have been weaker than anticipated.
The slower pace of the recovery reflects in part factors that are likely to be temporary, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply chain disruptions associated with the tragic events in Japan.
Inflation has picked up in recent months, mainly reflecting higher prices for some commodities and imported goods, as well as the recent supply chain disruptions.
However, longer-term inflation expectations have remained stable.
The unemployment rate remains elevated; however, the Committee expects the pace of recovery to pick up over coming quarters and measures of underlying inflation continue the unemployment rate to be somewhat low, relative to resume its gradual decline toward levels that the Committee judges to be consistent , over the longer run, with its dual mandate.
Increases in the prices of energy and other commodities have pushed up inflation in recent months.
Inflation has moved up recently, but the Committee anticipates that inflation will subside to levels at or below those consistent with the Committee's dual mandate as the effects of past energy and other commodity price increases dissipate.
However, the Committee expects these effects will continue to be transitory, but it will pay close attention to the evolution of inflation and inflation expectations.
The Committee continues to anticipate a gradual return to higher levels of resource utilization in a context of price stability.
To promote a stronger pace of the ongoing 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 keep the target range for the federal funds rate at 0 to 1/4 percent.
In particular, the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and will complete purchases of $600 billion of longer-term Treasury securities by the end of the current quarter.
The Committee will regularly review the size and composition of its securities holdings in light of incoming information and is prepared to adjust those holdings 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 , and a subdued outlook for inflation trends, and stable inflation expectations, over the medium run--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.
The Committee will complete its purchases of $600 billion of longer-term Treasury securities by the end of this month and will maintain its existing policy of reinvesting principal payments from its securities holdings.
The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.
The Committee will monitor the economic outlook and financial developments and will act as needed to best foster maximum employment and price stability.
Show the 3 unchanged sentences
Household spending and business investment in equipment and software continue to expand.
However, investment in nonresidential structures is still weak, and the housing sector continues to be depressed.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · April 27, 2011
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