May 16 · Published June 29, 2000
Statement·Presser·Minutes
AGAlan GreenspanMay 16, 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 50 basis points to 6-1/2 percent, driven by concerns about aggregate demand exceeding potential supply and rising inflation pressures, which aligns with the statement's rationale and policy action.
Our reading compares the minutes of the May 16 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-Wednesday, June 27-28, 2000.
The meeting adjourned at 1:05 p.m.
Donald L. Kohn
Secretary
What changed from the previous meeting’s minutes
- The federal funds rate target increased from 6 percent to 6-1/2 percent.
- The FOMC shifted from a 25 basis point tightening to a 50 basis point move.
- Core consumer price inflation was reported up slightly in March-April versus prior months.
- The employment cost index showed a larger first-quarter advance, with benefits accounting for over half the acceleration.
- The dollar appreciated considerably against major currencies, including a sizable rise against the euro.
- Most major equity indexes declined significantly over the intermeeting period.
Summary generated automatically from the two documents.