September 24 · Published November 15, 1996

Statement·Presser·Minutes

September 24, 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 believed that a modestly more restrictive policy was appropriate. In his view, historical precedents suggested that prolonged periods of taut labor markets were eventually associated with rising inflation. Given prevailing pressures on resources, especially labor, Mr. Stern was concerned about the distinct risk of an acceleration of inflation. Should this acceleration occur, he believed it would prove disruptive to the favorable performance of the economy, and he preferred to begin to address this risk promptly.
• Janet L. Yellen

From the minutes

Read the full minutes

What changed from the previous meeting’s minutes

• The unemployment rate fell from 5.4 percent in July to 5.1 percent in August.
• The dollar appreciated slightly over the intermeeting period, versus depreciating slightly previously.
• M2 and M3 growth picked up in August, with year-to-date rates in the upper portions of their ranges.
• The FOMC unanimously amended the foreign currency operations authorization to an 18-month average duration limit.
• The FOMC reviewed SOMA portfolio maturity practices, agreeing to maintain high liquidity.

Summary generated automatically from the two documents.

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