June 29–30 · Published August 12, 2004
Statement·Presser·Minutes·Policy
AGAlan GreenspanJune 29–30, 2004 FOMC Minutes
Our reading
The minutes are consistent with the statement because they detail the FOMC's unanimous decision to raise the federal funds rate by 25 basis points to 1-1/4 percent, discuss the rationale—including solid output growth, improved labor market conditions, and somewhat elevated but partly transitory inflation—and confirm the adoption of the statement's language about balanced risks and the likely measured pace of policy accommodation.
Our reading compares the minutes of the June 29–30 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
Secretary
Footnotes
1/ Attended portion of the meeting relating to the discussion of prospective external adjustment. Return to text
2/ Attended portion of the meeting relating to the discussion of economic developments.Return to text
What changed from the previous meeting’s minutes
- The federal funds rate target was raised from 1 percent to 1-1/4 percent.
- The statement replaced "patient in removing" with "policy accommodation can be removed at a pace that is likely to be measured."
- The statement added that the FOMC "will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability."
- The statement added a reference to the possibility that some recent inflation acceleration might reflect transitory factors.
- The labor market reference was broadened from "new hiring had appeared to pick up" to "labor market conditions had improved."
- The next meeting was rescheduled from June 29-30 to August 10, 2004.
Summary generated automatically from the two documents.