FOMC statement of August 9, 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 August 9, 2011. Compared with the previous scheduled statement of June 22, 2011: 7 sentences changed, 9 were added, 5 were removed, and 4 stayed the same. In words: 262 added, 186 removed. The vote on this statement: 3 members voted against: Richard W. Fisher, Narayana Kocherlakota, Charles I. Plosser. On the June 22, 2011 statement: Unanimous.
FOMC statement · August 9, 2011
Changed sentences against the previous scheduled statement (June 22, 2011)
4 unchanged · 7 changed · 9 added · 5 removed · words +262 / −186
- June 22, 2011
- Unanimous.
- August 9, 2011
- 3 members voted against: Richard W. Fisher, Narayana Kocherlakota, Charles I. Plosser.
Information received since the Federal Open Market Committee met in April June indicates that the economic recovery is continuing at a moderate pace, though somewhat more slowly growth so far this year has been considerably slower than the Committee had expected.
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.
Household spending and business investment in equipment and software continue to expand.
Indicators suggest a deterioration in overall labor market conditions in recent months, and the unemployment rate has moved up.
However Household spending has flattened out, investment in nonresidential structures is still weak, and the housing sector continues to be remains depressed.
However, business investment in equipment and software continues to expand.
Temporary factors, 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, appear to account for only some of the recent weakness in economic activity.
Inflation has picked up earlier in recent months the year, mainly reflecting higher prices for some commodities and imported goods, as well as the recent supply chain disruptions.
More recently, inflation has moderated as prices of energy and some commodities have declined from their earlier peaks.
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 the unemployment rate to resume its gradual decline toward levels that the Committee judges to be consistent with its dual mandate.
The Committee now expects a somewhat slower pace of recovery over coming quarters than it did at the time of the previous meeting and anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate.
Moreover, downside risks to the economic outlook have increased.
Inflation has moved up recently, but The Committee also anticipates that inflation will subside to settle, over coming quarters, at levels at or below those consistent with the Committee's dual mandate as the effects of past energy and other commodity price increases dissipate further.
The Committee continues to anticipate currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate for an extended period at least through mid-2013.
The Committee will complete its purchases of $600 billion of longer-term Treasury securities by the end of this month and also will maintain its existing policy of reinvesting principal payments from its securities holdings.
The Committee will monitor the economic outlook and financial developments and will act as needed to best foster maximum employment and price stability.
The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability.
It will continue to assess the economic outlook in light of incoming information and is prepared to employ these tools as appropriate.
Voting against the action were: Richard W. Fisher, Narayana Kocherlakota, and Charles I. Plosser, who would have preferred to continue to describe economic conditions as likely to warrant exceptionally low levels for the federal funds rate for an extended period.
Show the 4 unchanged sentences
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.
To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent.
The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · June 22, 2011
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