(Adds link to multimedia version of same)
Sept 16 (Reuters) - The following is a comparison, side by side,
of Tuesday's statement from the Federal Open Market Committee with
the statement the committee issued on August 5 at the conclusion of its
previous meeting.
To compare changes to Wednesday's statement with the April 30 statement,
please click here
The statement of Federal Open Market Committee at the The statement of Federal Open Market Committee at the
conclusion of its meeting on September 16, 2008: conclusion of its meeting on August 5, 2008:
The Federal Open Market Committee decided today The Federal Open Market Committee decided today
to keep its target for the federal funds rate at to keep its target for the federal funds rate at
2 percent. 2 percent.
Strains in financial markets have increased Economic activity expanded in the second quarter,
significantly and labor markets have weakened partly reflecting growth in consumer spending and
further. Economic growth appears to have slowed exports. However, labor markets have softened
recently, partly reflecting a softening of further and financial markets remain under
household spending. Tight credit conditions, the considerable stress. Tight credit conditions, the
ongoing housing contraction, and some slowing in ongoing housing contraction, and elevated energy
export growth are likely to weigh on economic prices are likely to weigh on economic growth
growth over the next few quarters. Over time, the over the next few quarters. Over time, the
substantial easing of monetary policy, combined substantial easing of monetary policy, combined
with ongoing measures to foster market liquidity, with ongoing measures to foster market liquidity,
should help to promote moderate economic growth. should help to promote moderate economic growth.
Inflation has been high, spurred by the earlier Inflation has been high, spurred by earlier
increases in the prices of energy and some other increases in the prices of energy and some other
commodities. The Committee expects inflation to commodities, and some indicators of inflation
moderate later this year and next year, but the expectations have been elevated. The Committee
inflation outlook remains highly uncertain. expects inflation to moderate later this year and
next year, but the inflation outlook remains
highly uncertain.
The downside risks to growth and the upside risks Although downside risks to growth remain, the
to inflation are both of significant concern to upside risks to inflation are also of significant
the Committee. The Committee will monitor concern to the Committee. The Committee will
economic and financial developments carefully and continue to monitor economic and financial
will act as needed to promote sustainable developments and will act as needed to promote
economic growth and price stability. sustainable economic growth and price stability.
Voting for the FOMC monetary policy action were: Voting for the FOMC monetary policy action were:
Ben S. Bernanke, Chairman; Christine M. Cumming; Ben S. Bernanke, Chairman; Timothy F. Geithner,
Elizabeth A. Duke; Richard W. Fisher; Donald L. Vice Chairman; Elizabeth A. Duke, Donald L. Kohn,
Kohn; Randall S. Kroszner; Sandra Pianalto; Randall S. Kroszner; Frederic S. Mishkin; Sandra
Charles I. Plosser; Gary H. Stern; and Kevin M. Pianalto; Charles I. Plosser; Gary H. Stern; and
Warsh. Ms. Cumming voted as the alternate for Kevin M. Warsh.
Timothy F. Geithner.
Voting against was Richard W. Fisher, who
preferred an increase in the target for the
federal funds rate at this meeting.
