August 10 · Published September 23, 2004
Statement·Presser·Minutes
AGAlan GreenspanAugust 10, 2004 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the FOMC's decision to raise the federal funds rate by 25 basis points to 1-1/2 percent, acknowledge the moderation in output and employment growth partly due to higher energy prices, and maintain the view that risks to sustainable growth and price stability are roughly balanced, with policy accommodation likely to be removed at a measured pace.
Our reading compares the minutes of the August 10 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, September 21, 2004.
The meeting adjourned at 1:00 p.m.
Vincent R. Reinhart
Secretary
What changed from the previous meeting’s minutes
- The federal funds rate target was raised from 1 percent to 1-1/4 percent in June, then to 1-1/2 percent in August.
- Core consumer price inflation moderated substantially in May and June, after having accelerated earlier in 2004.
- The U.S. trade deficit declined in May after reaching a record high in April.
- Consumer spending slowed sharply in the second quarter, with a resumption of faster growth expected.
- Payroll growth fell back in June and July after significant gains in the spring.
- The FOMC acknowledged higher energy prices as a factor in the recent moderation of economic growth.
Summary generated automatically from the two documents.