March 22 · Published April 12, 2005
Statement·Presser·Minutes
AGAlan GreenspanMarch 22, 2005 FOMC Minutes
Our reading
The minutes read somewhat more hawkish relative to the statement because they reveal that, despite the unanimous decision to raise rates by 25 basis points, many participants had grown less certain about the inflation outlook and perceived the risks as tilted to the upside, with some even viewing an upside inflation surprise as potentially more harmful than a downside one—nuances that the statement’s balanced-risk language and measured-pace commitment do not fully convey.
Our reading compares the minutes of the March 22 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
Notation Vote
By notation vote completed on February 22, 2005, the Committee unanimously approved the minutes of the meeting of the Federal Open Market Committee held on February 1-2, 2005.
Vincent R. Reinhart
Secretary
What changed from the previous meeting’s minutes
- Federal funds rate target raised from 2-1/2 percent to 2-3/4 percent.
- Risk assessment in statement made explicitly conditional on appropriate monetary policy.
- Statement added that inflation pressures have picked up and pricing power is more evident.
- Staff forecast revised up business investment spending outlook appreciably.
- Market expectations for policy trajectory rose after Chairman's testimony and higher oil prices.
- Next FOMC meeting scheduled for May 3, 2005, instead of March 22.
Summary generated automatically from the two documents.