July 5–6 · Published August 25, 1995
Statement·Presser·Minutes
AGAlan GreenspanJuly 5–6, 1995 FOMC Minutes
Our reading
The minutes are consistent with the statement because they document that the FOMC voted to ease monetary policy slightly, as reflected in the directive to "decrease slightly the existing degree of pressure on reserve positions," which aligns with the statement's announcement of a 25 basis point reduction in the federal funds rate.
Our reading compares the minutes of the July 5–6 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Alan S. Blinder
- Alan Greenspan
- Thomas M. Hoenig ↑ dissented
- Mr. Hoenig dissented because he believed the stance of monetary policy should remain unchanged at this time. With the pace of economic activity likely to return to trend growth later this year and inflation expected to be higher this year and next than in 1994, he felt an unchanged policy in the near term would enhance the prospects of achieving the Committee's long-run objectives of sustainable economic growth and price stability.
- Edward W. Kelley, Jr.
- Lawrence B. Lindsey
- William J. McDonough
- Thomas C. Melzer
- Cathy E. Minehan
- Michael H. Moskow
- Susan M. Phillips
- Janet L. Yellen
From the minutes
FOMC minutes
Mr. Hoenig dissented because he believed the stance of monetary policy should remain unchanged at this time. With the pace of economic activity likely to return to trend growth later this year and inflation expected to be higher this year and next than in 1994, he felt an unchanged policy in the near term would enhance the prospects of achieving the Committee's long-run objectives of sustainable economic growth and price stability.
It was agreed that the next meeting of the Committee would be held on Tuesday, August 22, 1995.
The meeting adjourned at 12:20 p.m.
Donald L. Kohn
What changed from the previous meeting’s minutes
- The FOMC voted to raise the 1995 M3 growth range from 0-4 percent to 2-6 percent.
- The FOMC established tentative 1996 ranges for M2, M3, and debt growth.
- The directive shifted from maintaining reserve pressure to slightly easing reserve pressure.
- The directive's bias changed from neutral to favoring lesser reserve restraint.
- Mr. Hoenig dissented, preferring an unchanged policy stance.
- The next meeting was moved from July 5-6 to August 22, 1995.
Summary generated automatically from the two documents.