FOMC statement of October 28, 2015
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 October 28, 2015. Compared with the previous scheduled statement of September 17, 2015: 7 sentences changed, 1 was added, 2 were removed, and 12 stayed the same. In words: 40 added, 49 removed. The vote on this statement: 1 member voted against: Jeffrey M. Lacker. On the September 17, 2015 statement: 1 member voted against: Jeffrey M. Lacker.
FOMC statement · October 28, 2015
Changed sentences against the previous scheduled statement (September 17, 2015)
12 unchanged · 7 changed · 1 added · 2 removed · words +40 / −49
- September 17, 2015
- 1 member voted against: Jeffrey M. Lacker.
- October 28, 2015
- 1 member voted against: Jeffrey M. Lacker.
Information received since the Federal Open Market Committee met in July September suggests that economic activity is has been expanding at a moderate pace.
Household spending and business fixed investment have been increasing moderately at solid rates in recent months, and the housing sector has improved further; however, net exports have been soft.
The labor market continued to improve, with solid job gains and declining unemployment.
The pace of job gains slowed and the unemployment rate held steady.
On balance Nonetheless, labor market indicators, on balance, show that underutilization of labor resources has diminished since early this year.
Market-based measures of inflation compensation moved slightly lower; survey-based measures of longer-term inflation expectations have remained stable.
Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term.
Nonetheless, The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate.
The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced but is monitoring global economic and financial developments abroad.
In determining how long whether it will be appropriate to maintain this raise the target range at its next meeting, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation.
Show the 12 unchanged sentences
Inflation has continued to run below the Committee's longer-run objective, partly reflecting declines in energy prices and in prices of non-energy imports.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
Inflation is anticipated to remain near its recent low level in the near term but the Committee expects inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects of declines in energy and import prices dissipate.
The Committee continues to monitor inflation developments closely.
To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate.
This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.
The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.
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 of rolling over maturing Treasury securities at auction.
This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.
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.
The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.
Voting against the action was Jeffrey M. Lacker, who preferred to raise the target range for the federal funds rate by 25 basis points at this meeting.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · September 17, 2015
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.