May 3 · Published May 24, 2005
Statement·Presser·Minutes
AGAlan GreenspanMay 3, 2005 FOMC Minutes
Our reading
The minutes read more dovish relative to the statement because they emphasize the Committee's judgment that an accelerated path of policy tightening was not necessary at that time, a point that the market focused on as a signal of a more cautious stance.
Our reading compares the minutes of the May 3 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.
- Richard W. Fisher
- Timothy F. Geithner
- Edward M. Gramlich
- Alan Greenspan
- Donald L. Kohn
- Michael H. Moskow
- Mark W. Olson
- Anthony M. Santomero
- Stern
From the minutes
FOMC minutes
Vincent R. Reinhart
Secretary
Footnote
1. Secretary's note: Advice had been received that Richard W. Fisher had been elected by the directors of the Federal Reserve Banks of Atlanta, Dallas, and St. Louis, as a member of the Federal Open Market Committee for the period commencing April 4, 2005, and that he had executed his oath of office. Return to text
What changed from the previous meeting’s minutes
- The FOMC raised the target federal funds rate 25 basis points to 3 percent.
- The FOMC dropped the March statement's reference that energy prices had not fed through to core consumer prices.
- The FOMC noted that core inflation had moved up over recent quarters and risks to the inflation outlook were skewed to the upside.
- The FOMC observed that downside risks to sustainable growth had become more evident, with recent slower growth likely transitory.
- The FOMC retained the "measured pace" forward-looking language, with all members agreeing to keep it.
- Richard W. Fisher joined the FOMC as a member, replacing absent Bernanke.
Summary generated automatically from the two documents.