FOMC statement of January 30, 2013
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 30, 2013. Compared with the previous scheduled statement of December 12, 2012: 5 sentences changed, 3 were added, 6 were removed, and 12 stayed the same. In words: 126 added, 167 removed. The vote on this statement: 1 member voted against: Esther L. George. On the December 12, 2012 statement: 1 member voted against: Jeffrey M. Lacker.
FOMC statement · January 30, 2013
Changed sentences against the previous scheduled statement (December 12, 2012)
12 unchanged · 5 changed · 3 added · 6 removed · words +126 / −167
- December 12, 2012
- 1 member voted against: Jeffrey M. Lacker.
- January 30, 2013
- 1 member voted against: Esther L. George.
Information received since the Federal Open Market Committee met in October December suggests that growth in economic activity and employment have continued to expand at a moderate pace paused in recent months, apart from in large part because of weather-related disruptions and other transitory factors.
Although the unemployment rate has declined somewhat since the summer, it remains elevated.
Employment has continued to expand at a moderate pace but the unemployment rate remains elevated.
Household spending has continued to advance and business fixed investment advanced, and the housing sector has shown further signs of improvement, but growth in business fixed investment has slowed.
The Committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions.
The Committee expects that, with appropriate policy accommodation, economic growth will proceed at a moderate pace and the unemployment rate will gradually decline toward levels the Committee judges consistent with its dual mandate.
Furthermore, Although strains in global financial markets continue have eased somewhat, the Committee continues to pose significant see downside risks to the economic outlook.
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 will continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month.
The Committee also will purchase longer-term Treasury securities after its program to extend the average maturity of its holdings of Treasury securities is completed at the end of the year, initially at a pace of $45 billion per month.
The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and , in January, will resume of rolling over maturing Treasury securities at auction.
The Committee views these thresholds as consistent with its earlier date-based guidance.
Voting against the action was Jeffrey M. Lacker, who opposed the asset purchase program and the characterization of the conditions under which an exceptionally low range for the federal funds rate will be appropriate.
Statement Regarding Purchases of Treasury Securities and Agency Mortgage-Backed Securities
Voting against the action was Esther L. George, who was concerned that the continued high level of monetary accommodation increased the risks of future economic and financial imbalances and, over time, could cause an increase in long-term inflation expectations.
Show the 12 unchanged sentences
Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices.
Longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
The Committee also anticipates that inflation over the medium term likely will run at or below its 2 percent objective.
Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.
The Committee will closely monitor incoming information on economic and financial developments in coming months.
If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until such improvement is achieved in a context of price stability.
In determining the size, pace, and composition of its asset purchases, the Committee will, as always, take appropriate account of the likely efficacy and costs of such purchases.
To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens.
In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored.
In determining how long to maintain a highly accommodative stance of monetary policy, the Committee will also consider other information, including additional measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments.
When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · December 12, 2012
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