July 5–6 · Published August 19, 1994
Statement·Presser·Minutes
AGAlan GreenspanJuly 5–6, 1994 FOMC Minutes
Vote
- Alan S. Blinder
- J. Alfred Broaddus, Jr. ↑ dissented
- Mr. Broaddus dissented because he believed that additional near-term tightening was necessary to contain inflation. The tightening actions implemented thus far this year were moderate by historical standards, and he doubted that they would prove sufficient to prevent higher inflation given the strength of the economic expansion, the minimal remaining margins of unemployed labor and other producer resources, and inflationary expectations that he feared might already be rising.
- 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
Prior to the conclusion of this meeting, the members discussed the desirability of announcing the outcome of a meeting when no action to change policy was taken. Views differed on this issue, but most of the members supported a proposal to provide a brief and informal indication that the meeting had ended and that there would be no further announcements. Since early February, a statement had been released after each meeting, all of which had involved policy changes; failure to take some step after this meeting to make clear that there was no change to announce would lead for a time to a heightened degree of uncertainty. With regard to future announcements, it was understood that this issue along with other public disclosure questions would be considered at a later meeting. The Committee's decision regarding announcements would then be made public.
It was agreed that the next meeting of the Committee would be held on Tuesday, August 16, 1994.
The meeting adjourned at 12:35 p.m.
Donald L. Kohn Secretary
What changed from the previous meeting’s minutes
- The FOMC voted to increase the discount rate by 1/2 percentage point on May 17, 1994.
- The FOMC shifted from a symmetric to an asymmetric directive favoring restraint.
- The 1995 monitoring range for total domestic nonfinancial debt was reduced to 3 to 7 percent.
- The FOMC decided to maintain unchanged pressure on reserve positions instead of increasing it.
- Mr. Broaddus dissented, favoring additional near-term tightening to contain inflation.
- The FOMC agreed to announce meeting outcomes even when no policy action was taken.
Summary generated automatically from the two documents.