FOMC statement of December 16, 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 December 16, 2015. Compared with the previous scheduled statement of October 28, 2015: 9 sentences changed, 6 were added, 6 were removed, and 5 stayed the same. In words: 274 added, 260 removed. The vote on this statement: Unanimous. On the October 28, 2015 statement: 1 member voted against: Jeffrey M. Lacker.
FOMC statement · December 16, 2015
Changed sentences against the previous scheduled statement (October 28, 2015)
5 unchanged · 9 changed · 6 added · 6 removed · words +274 / −260
- October 28, 2015
- 1 member voted against: Jeffrey M. Lacker.
- December 16, 2015
- Unanimous.
Information received since the Federal Open Market Committee met in September October suggests that economic activity has been expanding at a moderate pace.
The pace of job gains slowed and the unemployment rate held steady.
Nonetheless, A range of recent labor market indicators, on balance including ongoing job gains and declining unemployment, show shows further improvement and confirms that underutilization of labor resources has diminished appreciably since early this year.
Inflation has continued to run below the Committee's 2 percent longer-run objective, partly reflecting declines in energy prices and in prices of non-energy imports.
Market-based measures of inflation compensation moved slightly lower remain low; some survey-based measures of longer-term inflation expectations have remained stable edged down.
The Committee currently expects that, with appropriate gradual adjustments in the stance of monetary policy accommodation, economic activity will continue to expand at a moderate pace , with and labor market indicators continuing will continue to move toward levels the Committee judges consistent with its dual mandate strengthen.
Overall, taking into account domestic and international developments, the Committee continues to see sees the risks to the outlook for both economic activity and the labor market as nearly balanced but is monitoring global economic and financial developments.
Inflation is anticipated to remain near its recent low level in the near term but the Committee expects inflation expected to rise gradually toward to 2 percent over the medium term as the labor market improves further and the transitory effects of declines in energy and import prices dissipate and the labor market strengthens further.
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.
The Committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise, over the medium term, to its 2 percent objective.
Given the economic outlook, and recognizing the time it takes for policy actions to affect future economic outcomes, the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent.
The stance of monetary policy remains accommodative after this increase, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.
In determining whether it will be appropriate the timing and size of future adjustments to raise the target range at its next meeting for the federal funds rate, the Committee will assess progress--both realized and expected --toward economic conditions relative to its objectives of maximum employment and 2 percent inflation.
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.
In light of the current shortfall of inflation from 2 percent, the Committee will carefully monitor actual and expected progress toward its inflation goal.
The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.
However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.
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, and it anticipates doing so until normalization of the level of the federal funds rate is well under way.
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.
Show the 5 unchanged sentences
Household spending and business fixed investment have been increasing at solid rates in recent months, and the housing sector has improved further; however, net exports have been soft.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
The Committee continues to monitor inflation developments closely.
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.
This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · October 28, 2015
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