May 6 · Published June 26, 2003
Statement·Presser·Minutes
AGAlan GreenspanMay 6, 2003 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 1-1/4 percent, acknowledge mixed economic data with near-term sluggishness but an expected improvement over time, and agree that the risks to sustainable growth are roughly balanced while the probability of further disinflation exceeds that of a pickup in inflation, leading to a balance of risks tilted toward weakness.
Our reading compares the minutes of the May 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
- J. Alfred Broaddus, Jr.
- Roger W. Ferguson, Jr.
- Edward M. Gramlich
- Alan Greenspan
- Jack Guynn
- Donald L. Kohn
- William J. McDonough
- Michael H. Moskow
- Mark W. Olson
- Robert T. Parry
From the minutes
FOMC minutes
Votes against this action: None.
Abstention: Mr. McDonough.
Vincent R. Reinhart
Secretary
What changed from the previous meeting’s minutes
- The FOMC replaced its single balanced risks assessment with separate statements on growth and inflation risks.
- The press release now stated risks to growth were balanced but disinflation probability exceeded inflation pickup.
- The FOMC added a summary sentence that overall risks were tilted to the downside.
- The dollar declined over the intermeeting period instead of changing little.
- M2 growth slowed in March and April, attributed to temporary tax-related flows.
- The FOMC noted business confidence might be improving, a shift from prior caution.
Summary generated automatically from the two documents.