FOMC statement of November 2, 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 November 2, 2011. Compared with the previous scheduled statement of September 21, 2011: 8 sentences changed, 1 was added, 7 were removed, and 8 stayed the same. In words: 107 added, 217 removed. The vote on this statement: 1 member voted against: Charles L. Evans. On the September 21, 2011 statement: 3 members voted against: Richard W. Fisher, Narayana Kocherlakota, Charles I. Plosser.
FOMC statement · November 2, 2011
Changed sentences against the previous scheduled statement (September 21, 2011)
8 unchanged · 8 changed · 1 added · 7 removed · words +107 / −217
- September 21, 2011
- 3 members voted against: Richard W. Fisher, Narayana Kocherlakota, Charles I. Plosser.
- November 2, 2011
- 1 member voted against: Charles L. Evans.
Information received since the Federal Open Market Committee met in August September indicates that economic growth remains slow strengthened somewhat in the third quarter, reflecting in part a reversal of the temporary factors that had weighed on growth earlier in the year.
Nonetheless, recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated.
Household spending has been increasing increased at only a modest somewhat faster pace in recent months despite some recovery in sales of motor vehicles as supply-chain disruptions eased.
Business investment in equipment and software has continued to expand, but investment in nonresidential structures is still weak, and the housing sector remains depressed.
However, business investment in equipment and software continues to expand.
The Committee continues to expect some pickup in the a moderate pace of recovery economic growth over coming quarters but and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate.
To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee decided today to continue its program to extend the average maturity of its holdings of securities as announced in September.
The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and to sell an equal amount of Treasury securities with remaining maturities of 3 years or less.
This program should put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative.
To help support conditions in mortgage markets, the Committee will now reinvest principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities.
In addition, the Committee will maintain its existing policy of rolling over maturing Treasury securities at auction.
The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability.
The Committee is maintaining its existing policies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction.
It The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate to promote a stronger economic recovery in a context of price stability.
Voting against the action were Richard W was Charles L. Fisher, Narayana Kocherlakota, and Charles I. Plosser Evans, who did not support supported additional policy accommodation at this time.
Maturity Extension Program and Reinvestment Policy Frequently Asked Questions: Maturity Extension Program and Reinvestment Policy Current FAQs September 21, 2011 What is the Federal Reserve's maturity extension program (referred to by some as "operation twist") and what is its purpose?
Show the 8 unchanged sentences
Inflation appears to have moderated since earlier in the year as prices of energy and some commodities have declined from their peaks.
Longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
Moreover, there are significant downside risks to the economic outlook, including strains in global financial markets.
The Committee also anticipates that inflation will 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.
However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.
The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.
The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and 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 at least through mid-2013.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · September 21, 2011
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.