July 2–3 · Published August 23, 1996
Statement·Presser·Minutes·Policy
AGAlan GreenspanJuly 2–3, 1996 FOMC Minutes
Vote
- Boehne
- Alan Greenspan
- Jerry L. Jordan
- Edward W. Kelley, Jr.
- Lawrence B. Lindsey
- William J. McDonough
- Robert D. McTeer, Jr.
- Laurence H. Meyer
- Susan M. Phillips
- Alice M. Rivlin
- Stern ↑ dissented
- Mr. Stern dissented because he was convinced that a modestly more restrictive policy was warranted. In his view, the momentum of the economy and strains on capacity in labor and some other markets raised the possibility of an acceleration of inflation that would jeopardize the economic expansion. This concern aside, Mr. Stern also believed that current circumstances were favorable for policy action to reduce inflation further and thereby help to sustain the ongoing improvement in the economy.
- Janet L. Yellen
From the minutes
FOMC minutes
1 Attended portion of meeting concerning issues relating to the long-run price objective for monetary policy.
2 Attended portion of the meeting relating to the Committee's discussion of the economic outlook and its longer-run growth ranges for the monetary and debt aggregates.
3 Attended portion of the meeting relating to the Committee's review of its swap line agreements.
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What changed from the previous meeting’s minutes
- The FOMC shifted from a symmetric directive to an asymmetric directive biased toward restraint.
- The FOMC set provisional 1997 ranges for M2, M3, and debt, unchanged from 1996.
- Two members dissented on the 1996 and 1997 ranges, preferring higher M2 and M3 growth ranges.
- One member dissented on the short-run policy, favoring a modestly more restrictive stance.
- The dollar depreciated slightly over the intermeeting period, after having appreciated considerably.
- M2 declined in May, whereas it had slowed substantially in April.
Summary generated automatically from the two documents.