May 7 · Published June 27, 2002
Statement·Presser·Minutes
AGAlan GreenspanMay 7, 2002 FOMC Minutes
Our reading
The minutes are consistent with the statement because they confirm the FOMC's decision to maintain the federal funds rate at 1-3/4 percent and adopt a balanced risk assessment, reflecting the view that while economic activity was supported by inventory swings, the strength of final demand remained uncertain, justifying the accommodative policy stance.
Our reading compares the minutes of the May 7 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.
- Mark W. Olson
- Anthony M. Santomero
- Stern
From the minutes
FOMC minutes
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, June 25-26, 2002.
The meeting adjourned at 12:15 p.m.
Donald L. Kohn
Secretary
What changed from the previous meeting’s minutes
- The FOMC's press statement tone shifted from suggesting optimism to raising doubts about recovery strength.
- Equity prices moved down sharply in May, versus moving up sharply in March.
- M2 and M3 contracted in March and April, after rebounding in February.
- Staff forecast changed to slowing expansion in current quarter, from brisk early-year growth.
- Business fixed investment contracted further in first quarter, though decline was smallest in a year.
- Next meeting scheduled for June 25-26, 2002, instead of May 7, 2002.
Summary generated automatically from the two documents.