FOMC statement of November 1, 2017
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 November 1, 2017. Compared with the previous scheduled statement of September 20, 2017: 4 sentences changed, 3 were added, 3 were removed, and 12 stayed the same. In words: 68 added, 91 removed. The vote on this statement: Unanimous. On the September 20, 2017 statement: Unanimous.
FOMC statement · November 1, 2017
Changed sentences against the previous scheduled statement (September 20, 2017)
12 unchanged · 4 changed · 3 added · 3 removed · words +68 / −91
- September 20, 2017
- Unanimous.
- November 1, 2017
- Unanimous.
Information received since the Federal Open Market Committee met in July September indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year at a solid rate despite hurricane-related disruptions.
Job gains have remained solid in recent months, and the unemployment rate has stayed low.
Although the hurricanes caused a drop in payroll employment in September, the unemployment rate declined further.
Gasoline prices rose in the aftermath of the hurricanes, boosting overall inflation in September; however, inflation for items other than food and energy remained soft.
On a 12-month basis, overall both inflation and the measure excluding food and energy prices measures have declined this year and are running below 2 percent.
Hurricanes Harvey, Irma, and Maria have devastated many communities, inflicting severe hardship.
Storm-related Hurricane-related disruptions and rebuilding will continue to affect economic activity, employment, and inflation in the near term, but past experience suggests that the storms are unlikely to materially alter the course of the national economy over the medium term.
Higher prices for gasoline and some other items in the aftermath of the hurricanes will likely boost inflation temporarily; apart from that effect, Inflation on a 12-month basis is expected to remain somewhat below 2 percent in the near term but to stabilize around the Committee's 2 percent objective over the medium term.
In October, the Committee will initiate the balance sheet normalization program described in the June 2017 Addendum to the Committee's Policy Normalization Principles and Plans.
The balance sheet normalization program initiated in October 2017 is proceeding.
Show the 12 unchanged sentences
Household spending has been expanding at a moderate rate, and growth in business fixed investment has picked up in recent quarters.
Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
Consequently, the Committee continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, and labor market conditions will strengthen somewhat further.
Near-term risks to the economic outlook appear roughly balanced, but the Committee is monitoring inflation developments closely.
In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1 to 1-1/4 percent.
The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.
In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation.
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 will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal.
The Committee expects that economic conditions will evolve in a manner that will warrant 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.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · September 20, 2017
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.
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