September 29 · Published November 19, 1998
Statement·Presser·Minutes
AGAlan GreenspanSeptember 29, 1998 FOMC Minutes
Our reading
The minutes are consistent with the statement because they detail the FOMC's unanimous decision to ease monetary policy by 25 basis points, lowering the federal funds rate to around 5-1/4 percent, in response to global financial turmoil and tighter domestic financial conditions, while also noting the unchanged discount rate and the rationale of cushioning economic growth against these risks.
Our reading compares the minutes of the September 29 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Roger W. Ferguson, Jr.
- Edward M. Gramlich
- Alan Greenspan
- Thomas M. Hoenig
- Jerry L. Jordan
- Edward W. Kelley, Jr.
- William J. McDonough
- Laurence H. Meyer
- Cathy E. Minehan
- William Poole
- Alice M. Rivlin
From the minutes
FOMC minutes
Secretary
Footnotes
1 Attended portion of the meeting relating to the Committee's disclosure policies.
2 Attended portion of meeting relating to developments stemming from the financial difficulties of a large hedge fund.
What changed from the previous meeting’s minutes
- The federal funds rate target was lowered from 5.5% to 5.25%.
- The directive shifted from symmetrical to asymmetrical with an easing bias.
- The vote was unanimous, with no dissents, after one dissent in August.
- The FOMC discussed the Federal Reserve's role in the Long-Term Capital Management rescue.
- The FOMC reviewed its disclosure policies regarding announcements and minutes.
- M2 and M3 growth strengthened considerably in August and September.
Summary generated automatically from the two documents.