August 12
Statement·Presser·Minutes
AGAlan GreenspanAugust 12, 2003 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents confirm the FOMC's decision to maintain the federal funds rate at 1 percent, cite balanced risks to growth with a predominant concern about undesirably low inflation, and express the intention to keep policy accommodative for a considerable period.
Our reading compares the minutes of the August 12 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
- Michael H. Moskow
- Mark W. Olson
- Robert T. Parry
- Jamie B. Stewart, Jr.
From the minutes
FOMC minutes
The meeting adjourned at 1:15 p.m.
On September 15, 2003, the Committee met to review its practices regarding the communication of its policy decisions and its assessment of the risks to its objectives of fostering sustainable economic growth and price stability. After a detailed discussion of the issues, the Committee elected not to make substantial changes in its current approach to the policy announcement at this time. Although a variety of views was expressed, most members felt that current practices were generally appropriate in providing information to the public about the rationale for the Committee's decisions and its views about the risks to future economic performance. Nonetheless, members recognized that going forward they might, from time to time, consider changes that might improve the Committee's communication of its assessment of the economic situation.
Vincent R. Reinhart
Secretary
What changed from the previous meeting’s minutes
- The FOMC voted unanimously to maintain the federal funds rate at 1 percent, with no dissents.
- The June meeting had one dissent favoring a 50 basis point cut; the August meeting had none.
- The August minutes noted long-term Treasury yields rose sharply after the June easing decision.
- The August statement added that policy accommodation could be maintained for a considerable period.
- The August meeting scheduled a separate session to review communications practices, held September 15.
- The August minutes reported core consumer prices unchanged in June, with twelve-month core inflation notably lower.
Summary generated automatically from the two documents.