FOMC statement of June 20, 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 June 20, 2012. Compared with the previous scheduled statement of April 25, 2012: 12 sentences changed, 4 were added, 1 was removed, and 4 stayed the same. In words: 139 added, 92 removed. The vote on this statement: 1 member voted against: Jeffrey M. Lacker. On the April 25, 2012 statement: 1 member voted against: Jeffrey M. Lacker.
FOMC statement · June 20, 2012
Changed sentences against the previous scheduled statement (April 25, 2012)
4 unchanged · 12 changed · 4 added · 1 removed · words +139 / −92
- April 25, 2012
- 1 member voted against: Jeffrey M. Lacker.
- June 20, 2012
- 1 member voted against: Jeffrey M. Lacker.
Information received since the Federal Open Market Committee met in March April suggests that the economy has been expanding moderately this year.
Labor market conditions have improved However, growth in employment has slowed in recent months; , and the unemployment rate has declined but remains elevated.
Household spending and Business fixed investment have has continued to advance.
Household spending appears to be rising at a somewhat slower pace than earlier in the year.
Inflation has picked up somewhat declined, mainly reflecting higher lower prices of crude oil and gasoline, and longer-term inflation expectations have remained stable.
However, longer-term inflation expectations have remained stable.
The Committee expects economic growth to remain moderate over coming quarters and then to pick up very gradually.
Consequently, the Committee anticipates that the unemployment rate will decline gradually only slowly toward levels that it judges to be consistent with its dual mandate.
Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook.
The increase in oil and gasoline prices earlier this year is expected to affect inflation only temporarily, and The Committee anticipates that subsequently inflation over the medium term will run at or below the rate that it judges most consistent with its dual mandate.
The Committee also decided to continue through the end of the year its program to extend the average maturity of its holdings of securities as announced in September.
Specifically, the Committee intends to purchase Treasury securities with remaining maturities of 6 years to 30 years at the current pace and to sell or redeem an equal amount of Treasury securities with remaining maturities of approximately 3 years or less.
This continuation of the maturity extension program should put downward pressure on longer-term interest rates and help to make broader financial conditions more accommodative.
The Committee is maintaining its existing policies policy 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.
The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings take further action as appropriate to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.
Voting against the action was Jeffrey M. Lacker, who does not anticipate that economic conditions are likely to warrant exceptionally low levels opposed continuation of the federal funds rate through late 2014 maturity extension program.
Statement Regarding Continuation of the Maturity Extension Program
Show the 4 unchanged sentences
Despite some signs of improvement, the housing sector remains depressed.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee expects to 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.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · April 25, 2012
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.
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