January 29–30 · Published March 21, 2002
Statement·Presser·Minutes·Policy
AGAlan GreenspanJanuary 29–30, 2002 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the FOMC's decision to hold the federal funds rate at 1-3/4 percent and emphasize that, despite signs of economic stabilization and a potential recovery, the risks remain tilted toward economic weakness, justifying the unchanged policy stance.
Our reading compares the minutes of the January 29–30 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Susan S. Bies
- Roger W. Ferguson, Jr.
- Edward M. Gramlich
- Alan Greenspan
- Jerry L. Jordan
- William J. McDonough
- Robert D. McTeer, Jr.
- Laurence H. Meyer
- Mark W. Olson
- Anthony M. Santomero
- Stern
From the minutes
FOMC minutes
Footnotes
1. Attended Tuesday session only. Return to text
2. Attended portion of meeting relating to the discussion of monetary policy near the zero bound on nominal interest rates. Return to text
3. Attended portion of meeting relating to the above discussion and to the Committee's review of the economic outlook. Return to text
What changed from the previous meeting’s minutes
- The FOMC voted to maintain the federal funds rate at 1-3/4 percent, after reducing it by 25 basis points at the previous meeting.
- The vote was unanimous, with no dissents, whereas Mr. Hoenig had dissented previously.
- The directive changed from "reducing" to "maintaining" the federal funds rate at an average of around 1-3/4 percent.
- The staff forecast shifted from expecting continued decline in early 2002 to projecting an upturn early in 2002.
- Members reported incoming data indicated the economy was bottoming out, a change from the prior view of tentative stabilization.
- The dollar reached its highest level since the mid-1980s, appreciating somewhat against major currencies.
Summary generated automatically from the two documents.