February 1–2 · Published February 23, 2005
Statement·Presser·Minutes·Policy
AGAlan GreenspanFebruary 1–2, 2005 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 2-1/2 percent, reflect the same balanced risk assessment and measured pace of policy removal, and echo the statement's language on moderate output growth, gradual labor market improvement, and well-contained inflation.
Our reading compares the minutes of the February 1–2 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
- Jack Guynn
- Donald L. Kohn
- Michael H. Moskow
- Mark W. Olson
- Anthony M. Santomero
- Stern
From the minutes
FOMC minutes
1. Attended Tuesday�s session only.Return to text
2. Attended portion of meeting relating to special topic of a numerical definition of the price-stability objective for monetary policy.Return to text
3. Attended portion of meeting related to the economic outlook.Return to text
4. Secretary's note: Advice subsequently was received that the selection of Mr. Kos as Manager was satisfactory to the board of directors of the Federal Reserve Bank of New York.Return to text
What changed from the previous meeting’s minutes
- The FOMC raised the federal funds rate target from 2-1/4 percent to 2-1/2 percent.
- The December 14, 2004 meeting minutes release on January 4 triggered a significant upward revision in the anticipated path of monetary policy.
- The FOMC added one year to its forecast period, extending projections to 2006.
- The December 2004 meeting approved releasing minutes three weeks after policy decisions; the February 2005 minutes noted this release's market impact.
- The employment cost index decelerated in the fourth quarter, with wages gaining only slightly.
- Core consumer prices decelerated over the past few months, while overall prices were buffeted by energy movements.
Summary generated automatically from the two documents.