March 21 · Published May 18, 2000
Statement·Presser·Minutes
AGAlan GreenspanMarch 21, 2000 FOMC Minutes
Our reading
The minutes are consistent with the statement because they detail the FOMC's decision to raise the federal funds rate by 25 basis points to 6 percent and the Board of Governors' approval of a 25 basis point increase in the discount rate to 5-1/2 percent, while also reflecting the same concerns about aggregate demand exceeding potential supply and the risks of heightened inflation pressures.
Our reading compares the minutes of the March 21 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- J. Alfred Broaddus, Jr.
- Roger W. Ferguson, Jr.
- Edward M. Gramlich
- Alan Greenspan
- Jack Guynn
- Jerry L. Jordan
- Edward W. Kelley, Jr.
- William J. McDonough
- Laurence H. Meyer
- Robert T. Parry
From the minutes
FOMC minutes
It was agreed that the next meeting of the Committee would be held on Tuesday, May 16, 2000.
The meeting adjourned at 12:50 p.m.
Donald L. Kohn
Secretary
What changed from the previous meeting’s minutes
- The 2000 projections were replaced by a discussion of January and February data, with no new full-year forecasts provided.
- The federal funds rate target was raised from 5-3/4 percent to 6 percent, a 25 basis point increase.
- The discount rate was increased by 25 basis points to 5-1/2 percent, matching the federal funds rate action.
- The prior vote on money and debt ranges for 2000 was not revisited; no new ranges were established.
- The directive shifted from a "slight tightening" to a "slight amount" consistent with the 6 percent target, with no change in the 5-3/4 percent average noted.
- The statement on risks was updated to reflect "rising inflation" risks, replacing the earlier "weighted mainly toward" language.
Summary generated automatically from the two documents.