May 17 · Published July 8, 1994
Statement·Presser·Minutes
AGAlan GreenspanMay 17, 1994 FOMC Minutes
Our reading
The minutes read more hawkish because they reveal the FOMC's internal deliberations, which emphasized concerns about the economy's underlying strength, the diminishing constraints on growth, and the risk of rising inflation if policy remained accommodative. In contrast, the statement is more measured and forward-looking, focusing on the actions taken and the goal of sustaining the expansion, without detailing the depth of the FOMC's unease or the explicit debate over the need for a larger, more decisive tightening to preempt inflationary pressures.
Our reading compares the minutes of the May 17 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- J. Alfred Broaddus, Jr.
- Robert P. Forrestal
- Alan Greenspan
- Jerry L. Jordan
- Edward W. Kelley, Jr.
- John P. LaWare
- Lawrence B. Lindsey
- William J. McDonough
- Robert T. Parry
- Susan M. Phillips
From the minutes
FOMC minutes
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, July 5-6, 1994.
The meeting adjourned at 12:45 p.m.
Donald L. Kohn
Secretary
What changed from the previous meeting’s minutes
- The FOMC voted unanimously to increase reserve pressure, with no dissents, versus two dissents in March.
- The policy action included a 1/2 percentage point increase in the discount rate, not mentioned in March.
- The directive changed from "increase slightly" to "increase somewhat" the degree of pressure on reserve positions.
- All members favored a symmetric directive, except one, compared to a majority in March.
- The FOMC noted financial markets were better positioned to absorb policy adjustments, unlike March's volatility concerns.
- The next meeting was scheduled for July 5-6, 1994, instead of May 17.
Summary generated automatically from the two documents.