January 30–31 · Published March 29, 1996
Statement·Presser·Minutes
AGAlan GreenspanJanuary 30–31, 1996 FOMC Minutes
Our reading
The minutes read more hawkish because they explicitly state that the FOMC did not include a bias about the likely direction of future policy adjustments and emphasized that "slightly greater or slightly lesser reserve restraint would be acceptable," whereas the statement frames the action as a straightforward, decisive easing to support sustainable growth.
Our reading compares the minutes of the January 30–31 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Boehne
- Alan Greenspan
- Jerry L. Jordan
- Edward W. Kelley, Jr.
- Lawrence B. Lindsey
- William J. McDonough
- Robert D. McTeer, Jr.
- Susan M. Phillips
- Stern
- Janet L. Yellen
From the minutes
FOMC minutes
1-Attended portions of meeting relating to the Committee's review of
the economic outlook and establishment of its monetary and debt
ranges for 1996.
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What changed from the previous meeting’s minutes
- The FOMC decided to decrease slightly the degree of pressure on reserve positions, taking account of a possible reduction in the discount rate.
- New members voted in January 1996: Boehne, Jordan, McTeer, and Stern replaced Blinder, Hoenig, Melzer, and Minehan.
- The January minutes report M2 and M3 growth strengthened in December and January, versus sluggish November growth in December minutes.
- The January directive notes no clear change in underlying inflation trends, replacing December's mention of subdued price increases.
- The January directive adds that the nominal U.S. trade deficit narrowed in October, absent from the December directive.
Summary generated automatically from the two documents.