May 4 · Published July 1, 2004
Statement·Presser·Minutes
AGAlan GreenspanMay 4, 2004 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the same key decisions and assessments: the decision to keep the federal funds rate at 1 percent, the view that risks to sustainable growth are roughly equal, the shift in inflation risks to balance, and the introduction of the "measured" pace language for removing policy accommodation, with the minutes providing detailed discussion and context that align with the statement's concise summary.
Our reading compares the minutes of the May 4 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.
- Timothy F. Geithner
- Edward M. Gramlich
- Alan Greenspan
- Thomas M. Hoenig
- Donald L. Kohn
- Cathy E. Minehan
- Mark W. Olson
- Sandra Pianalto
- William Poole
From the minutes
FOMC minutes
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, June 29-30, 2004.
The meeting adjourned at 1:15 p.m.
Vincent R. Reinhart
Secretary
What changed from the previous meeting’s minutes
- The FOMC replaced "patient in removing its policy accommodation" with "policy accommodation can be removed at a pace that is likely to be measured."
- The risk assessment for inflation changed from a slight tilt toward disinflation to balanced risks.
- The March statement noted the probability of an unwelcome fall in inflation had declined further, while the January statement said it had diminished.
- The FOMC highlighted that hiring had picked up in May, whereas March minutes described new hiring as lagging.
- The May minutes reported that market participants expected policy tightening to begin sooner and proceed faster than previously anticipated.
Summary generated automatically from the two documents.