May 20 · Published July 3, 1997
Statement·Presser·Minutes
AGAlan GreenspanMay 20, 1997 FOMC Minutes
Vote
- J. Alfred Broaddus, Jr. ↑ dissented
- Mr. Broaddus dissented because he believed that the strength of investment demand, due possibly to an increase in the trend growth rate of productivity, required somewhat higher real interest rates to prevent inflationary pressures from developing. He was concerned that, with the economy already operating at a high level and labor markets apparently very tight, any increase in such pressures might be costly to reverse and might reduce the credibility of the Committee's longer-run strategy of promoting maximum sustainable growth by fostering price level stability. He also believed that the risk to the economy of a moderate further tightening was small given the apparent momentum of aggregate economic activity.
- Alan Greenspan
- Jack Guynn
- Edward W. Kelley, Jr.
- William J. McDonough
- Laurence H. Meyer
- Michael H. Moskow
- Robert T. Parry
- Susan M. Phillips
- Alice M. Rivlin
From the minutes
FOMC minutes
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, July 1-2, 1997.
The meeting adjourned at 12:45 p.m.
Donald L. Kohn
Secretary
What changed from the previous meeting’s minutes
- Policy stance changed from slight tightening to unchanged reserve pressure.
- Directive shifted from symmetric to asymmetric with tightening bias.
- Unemployment rate forecast fell from 5.3 percent to 4.9 percent.
- M2 and M3 growth exceeded upper bounds of annual ranges.
- One member dissented against maintaining unchanged policy stance.
- Next meeting scheduled for July 1-2, 1997 instead of May 20.
Summary generated automatically from the two documents.