November 6 · Published December 12, 2002
Statement·Presser·Minutes
AGAlan GreenspanNovember 6, 2002 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 1 1/4 percent, driven by concerns about economic weakness and uncertainty, while also indicating a shift to a balanced assessment of risks to the economy.
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
- 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, December 10, 2002.
The meeting adjourned at 1:55 p.m.
Vincent R. Reinhart
Secretary
What changed from the previous meeting’s minutes
- The FOMC cut the federal funds rate target by 50 basis points to 1-1/4 percent, from 1-3/4 percent.
- The FOMC shifted its risk assessment from tilted toward economic weakness to balanced.
- The vote was unanimous, with no dissents, unlike the previous meeting's two dissents favoring easing.
- The minutes noted diminished fiscal stimulus and more restrictive bank lending terms since late 2001.
- The FOMC discontinued study of foreign sovereign debt as repurchase agreement collateral.
- The FOMC decided to release staff studies on alternatives to Treasury securities to the public.
Summary generated automatically from the two documents.