July 6–7 · Published August 20, 1993
Statement·Presser·Minutes
AGAlan GreenspanJuly 6–7, 1993 FOMC Minutes
Vote
- Wayne D. Angell ↑ dissented
- Mr. Angell dissented because he favored a prompt move to tighten policy. In his view, monetary policy was overly expansive at this point as evidenced by what he viewed as excessive liquidity in financial markets, the negative level of real short-term interest rates, and the disappointing lack of progress toward lower inflation this year. Given indications of worsening inflationary expectations, such as the substantial rise in the price of gold, as well as projections of an increase in inflation, a policy that led to a steady federal funds rate in fact implied a further easing of an already stimulative monetary policy. In these circumstances, a tightening of policy would not involve any significant risk to the expansion but would foster changes in financial conditions and the outlook for inflation that would be more consistent with renewed progress toward price stability in 1994 and later. Declining inflation around the world and a stronger trend of productivity growth in the United States, among other factors, were providing a favorable environment for further disinflation, but those developments needed to be supported and validated by appropriate monetary policy action.
- Boehne
- E. Gerald Corrigan
- Alan Greenspan
- Silas Keehn
- Edward W. Kelley, Jr.
- John P. LaWare
- Lawrence B. Lindsey
- Robert D. McTeer, Jr.
- David W. Mullins, Jr.
- James H. Oltman
- Susan M. Phillips
- Stern
From the minutes
FOMC minutes
It was agreed that the next meeting of the Committee would be held on Tuesday, August 17, 1993.
The meeting adjourned at 12:25 p.m. on Wednesday, July 7, 1993.
Donald L. Kohn
Secretary
What changed from the previous meeting’s minutes
- M2 and M3 growth ranges lowered from 2-6% and 0.5-4.5% to 1-5% and 0-4%.
- Total domestic nonfinancial debt monitoring range lowered from 4.5-8.5% to 4-8%.
- Provisional 1994 monetary growth ranges set at 1-5% for M2 and 0-4% for M3.
- Vote on policy directive was unanimous except Mr. Angell dissenting, versus two dissents in May.
- Mr. Corrigan absent; Mr. Oltman voted as alternate, a change from May.
- Committee reviewed and reaffirmed confidentiality rules for FOMC information release.
Summary generated automatically from the two documents.