August 16 · Published September 30, 1994
Statement·Presser·Minutes
AGAlan GreenspanAugust 16, 1994 FOMC Minutes
Our reading
The minutes are consistent with the statement because they reflect the FOMC's decision to increase the discount rate by 1/2 percentage point (from 3.5% to 4%) and to allow this increase to fully pass through to reserve market interest rates, aligning with the statement's announcement of a 1/2 percentage point increase and its full transmission to interest rates.
Our reading compares the minutes of the August 16 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Alan S. Blinder
- 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
- Janet L. Yellen
From the minutes
FOMC minutes
Votes against this action: None.
It was agreed that the next meeting of the Committee would be held on Tuesday, September 27, 1994.
The meeting adjourned at 12:30 p.m.
Donald L. Kohn Secretary
What changed from the previous meeting’s minutes
- The FOMC voted to increase pressure on reserve positions in August, versus maintaining unchanged pressure in July.
- The August directive shifted to a symmetric intermeeting instruction, replacing July's asymmetric bias toward restraint.
- The August meeting approved a proposed 1/2 percentage point increase in the discount rate, pending Board approval.
- In August, the FOMC judged the economy as operating close to or at long-run potential, with upside inflation risks.
- July's directive noted a significant dollar decline; August reported the dollar unchanged on balance over the intermeeting period.
- In August, M2 and M3 turned up in July after declines in May and June; July minutes reported declines on average over those months.
Summary generated automatically from the two documents.