March 31 · Published May 21, 1998

Statement·Presser·Minutes

March 31, 1998 FOMC Minutes

Vote

• Roger W. Ferguson, Jr.
• Edward M. Gramlich
• Alan Greenspan
• Thomas M. Hoenig
• Jerry L. Jordan ↑ dissented
  • Mr. Jordan dissented because growth rates of various measures of money and credit in the second half of 1997 and the first quarter of this year were not consistent in his view with continued progress in reducing inflation. Recent price statistics understated the trend rates of inflation. The one-time effects of falling oil prices, lower food prices, and recent appreciation of the dollar on foreign-exchange markets provided only a temporary reduction of inflation. While some reacceleration of reported rates of inflation was probably unavoidable, sustained rapid money growth would risk even higher inflation in future years. The durability of the economic expansion would be jeopardized by price and wage decisions reflecting expectations that the purchasing power of the dollar would decline at faster rates in the future. Once such expectations became imbedded in the economy, even stronger policy actions would be required in order to reestablish a downward trend of inflation.
• Edward W. Kelley, Jr.
• William J. McDonough
• Laurence H. Meyer
• Cathy E. Minehan
• Susan M. Phillips
• William Poole
• Alice M. Rivlin

From the minutes

Read the full minutes

What changed from the previous meeting’s minutes

• The directive shifted from symmetric to asymmetric, tilted toward restraint.
• One member, Mr. Jordan, voted against the action, dissenting for immediate tightening.
• The federal funds rate target remained unchanged at about 5-1/2 percent.
• The dollar depreciated against several Asian emerging market currencies, not appreciated.
• M2 and M3 growth picked up in the first quarter from robust fourth-quarter rates.
• The FOMC noted a greater risk of higher inflation over the longer run.

Summary generated automatically from the two documents.

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