August 13 · Published September 26, 2002
Statement·Presser·Minutes
AGAlan GreenspanAugust 13, 2002 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the FOMC's decision to maintain the federal funds rate at 1 3/4 percent, while acknowledging a shift in the balance of risks toward economic weakness, as evidenced by the minutes' discussion of deteriorating financial conditions and the FOMC's vote to adopt a statement tilted toward weakness.
Our reading compares the minutes of the August 13 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Ben S. Bernanke
- Susan S. Bies
- Roger W. Ferguson, Jr.
- Edward M. Gramlich
- Alan Greenspan
- Jerry L. Jordan
- Donald L. Kohn
- 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, September 24, 2002.
The meeting adjourned at 12:40 p.m.
Vincent R. Reinhart
Secretary
What changed from the previous meeting’s minutes
- Risk assessment shifted from balanced to weighted toward economic weakness.
- Staff forecast downgraded growth pickup to gradual over next year and a half.
- Members marked down growth forecasts due to disappointing incoming data.
- Bernanke and Kohn joined as voters; no new dissents recorded.
- Equity prices plunged further on corporate malfeasance and earnings certification fears.
- M2 growth surged in July on inflows to liquid deposits and money funds.
Summary generated automatically from the two documents.