September 27 · Published November 18, 1994
Statement·Presser·Minutes
AGAlan GreenspanSeptember 27, 1994 FOMC Minutes
Vote
- Alan S. Blinder
- J. Alfred Broaddus, Jr. ↑ dissented
- He believed that a prompt move to somewhat greater monetary restraint was needed at this point. In his view, the current stance of monetary policy was overly accommodative in light of the signs of increasing price pressures and rising inflationary expectations that were associated with the continuing strength of the economic expansion and high levels of capacity utilization. In this situation, a delay in implementing some monetary policy tightening would incur a substantial risk of a further increase in inflationary expectations and could make it more costly to achieve the Committee's longer-term anti-inflationary goals.
- 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
Mr. Broaddus dissented because he believed that a prompt move to somewhat greater monetary restraint was needed at this point. In his view, the current stance of monetary policy was overly accommodative in light of the signs of increasing price pressures and rising inflationary expectations that were associated with the continuing strength of the economic expansion and high levels of capacity utilization. In this situation, a delay in implementing some monetary policy tightening would incur a substantial risk of a further increase in inflationary expectations and could make it more costly to achieve the Committee's longer-term anti-inflationary goals.
It was agreed that the next meeting of the Committee would be held on Tuesday, November 15, 1994.
The meeting adjourned at 1:00 p.m.
Donald L. Kohn Secretary
What changed from the previous meeting’s minutes
- The August meeting raised the discount rate by 50 basis points to 4 percent; September confirmed it.
- The August directive increased reserve pressure; September maintained existing pressure.
- The August directive was symmetric; September shifted to asymmetric bias toward restraint.
- September saw one dissenting vote (Broaddus) favoring immediate tightening; August had none.
- September noted M2 and M3 declined in August; August reported they turned up in July.
- September reported dollar depreciated over intermeeting; August reported it was unchanged.
Summary generated automatically from the two documents.