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The Fed speaketh:

The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 3-1/4 percent.

The Committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity. Although energy prices have risen further, the expansion remains firm and labor market conditions continue to improve gradually. Pressures on inflation have stayed  elevated, but longer-term inflation expectations remain well contained.

The Committee perceives that, with appropriate monetary policy action, the upside and downside risks to the attainment of both sustainable growth and price stability should be kept roughly equal. With underlying inflation expected to be contained, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured. Nonetheless, the Committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Roger W. Ferguson, Jr.; Richard W. Fisher; Edward M. Gramlich; Donald L. Kohn; Michael H. Moskow; Mark W. Olson; Anthony M. Santomero; and Gary H. Stern.

In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 4-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors  of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and  San Francisco.

I nominate this for the most understated phrase on the planet:  In a related action, the Board of Governors unanimously approved a
25-basis-point increase in the discount rate to 4-1/4 percent.


Category: Economy, Fixed Income/Interest Rates

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “Verbatim Text Of Federal Reserve’s Interest Rate Decision”

  1. royce says:

    Mr. Market doesn’t seem too pleased with the announcement. Is this a mere short term reaction or a the first step in a long term trend lower, do you think?

  2. calmo says:

    Not a peep from Fisher? Were there signs of duck tape on his cheeks? There are loads of us wanting to know whether this is top of the ninth, no?
    This does not bode well. The FOMC is too nervous to let Fisher loose again. Surely the markets will respond to this covert message: tighten up those loose tongues.

    “I nominate this for the most understated phrase on the planet: ‘In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 4-1/4 percent.’ ”

    This bit is to make the story not just more complete and finished but also more lengthy, attractive, polished, and, well, more professional. “Understated” misses (for me) this aspect: The minutes of the meeting need some accompaniment. Embellishment. Something.
    The transcript would bear this out –”The FOMC raises the prime rate to 3.25%”
    does not fill the page. It doesn’t. We feel short changed, even cheated.
    We demand more. And maybe we’ll get it with an account of what the members were wearing on that day. This could expand readership. It could.

    So I nominate it most nauseating phrase.