FOMC statement of January 25, 2012
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 25, 2012. Compared with the previous scheduled statement of December 13, 2011: 8 sentences changed, 3 were added, 4 were removed, and 3 stayed the same. In words: 154 added, 165 removed. The vote on this statement: 1 member voted against: Jeffrey M. Lacker. On the December 13, 2011 statement: 1 member voted against: Charles L. Evans.
FOMC statement · January 25, 2012
Changed sentences against the previous scheduled statement (December 13, 2011)
3 unchanged · 8 changed · 3 added · 4 removed · words +154 / −165
- December 13, 2011
- 1 member voted against: Charles L. Evans.
- January 25, 2012
- 1 member voted against: Jeffrey M. Lacker.
Information received since the Federal Open Market Committee met in November December suggests that the economy has been expanding moderately, notwithstanding some apparent slowing in global growth.
While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated.
Household spending has continued to advance, but growth in business fixed investment appears to be increasing less rapidly has slowed, and the housing sector remains depressed.
Inflation has moderated since earlier been subdued in the year recent months, and longer-term inflation expectations have remained stable.
The Committee continues to expect a moderate pace of expects economic growth over coming quarters to be modest and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate.
The Committee also anticipates that inflation will settle, over coming quarters, inflation will run at levels at or below those consistent with the Committee's dual mandate.
However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.
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 expects to continue its program to extend the average maturity of its holdings of securities as announced in September maintain a highly accommodative stance for monetary policy.
In particular, the Committee decided today 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 late 2014.
The Committee also decided to continue its program to extend the average maturity of its holdings of securities as announced in September.
The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate to promote a stronger economic recovery in a context of price stability.
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.
The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools to promote a stronger economic recovery in a context of price stability.
Voting against the action was Charles L. Evans, who supported additional policy accommodation at this time.
Voting against the action was Jeffrey M. Lacker, who preferred to omit the description of the time period over which economic conditions are likely to warrant exceptionally low levels of the federal funds rate.
Show the 3 unchanged sentences
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
Strains in global financial markets continue to pose significant downside risks to the economic outlook.
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.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · December 13, 2011
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