November 6 · Published December 13, 2001
Statement·Presser·Minutes
AGAlan GreenspanNovember 6, 2001 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the FOMC's decision to lower the federal funds rate by 50 basis points to 2 percent, acknowledge heightened uncertainty and risks weighted toward economic weakness, and note the long-term prospects for productivity and growth remain favorable despite current restraints.
Our reading compares the minutes of the November 6 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
- Edward W. Kelley, Jr.
- William J. McDonough
- Laurence H. Meyer
- Cathy E. Minehan
- Michael H. Moskow
- William Poole
From the minutes
FOMC minutes
It was agreed that the next meeting of the Committee would be held on Tuesday, December 11, 2001.
The meeting adjourned at 1:20 p.m.
Donald L. Kohn
Secretary
What changed from the previous meeting’s minutes
- The federal funds rate target was reduced from 2.5 percent to 2 percent.
- The dollar rose slightly against major foreign currencies instead of being about unchanged.
- The staff forecast shifted from a mild downturn to a deepening contraction through year-end.
- Consumer spending was noted as holding up reasonably well, with a surge in motor vehicle sales.
- Three members favored a 25 basis point cut but accepted the 50 basis point reduction.
- The next meeting was scheduled for December 11, 2001, instead of November 6.
Summary generated automatically from the two documents.