August 9 · Published August 30, 2005
Statement·Presser·Minutes
AGAlan GreenspanAugust 9, 2005 FOMC Minutes
Our reading
The minutes read more hawkish than the statement because they reveal that, despite acknowledging recent benign core inflation readings, the discussion emphasized a notable upgrade to the growth outlook, a reduction in resource slack, and a clear concern that "underlying core inflation appeared to be running at a pace around the upper end of the range" consistent with price stability—concerns reinforced by upward revisions to historical inflation data and elevated energy prices, which collectively suggested a higher perceived risk of inflation pressures building.
Our reading compares the minutes of the August 9 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- 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
Notation Vote
By notation vote completed on July 20, 2005, the Committee unanimously approved the minutes of the meeting of the Federal Open Market Committee held on June 29-30, 2005.
Vincent R. Reinhart
Secretary
What changed from the previous meeting’s minutes
- The FOMC raised the federal funds rate target by 25 basis points to 3.25 percent at both meetings.
- The FOMC noted core PCE inflation for 2004 was revised up from 1.6 percent to 2.2 percent.
- The FOMC reported the trade deficit narrowed in May, with exports rising and imports falling.
- The FOMC stated the People's Bank of China announced a 2.1 percent appreciation of the renminbi.
- The FOMC noted Mr. Gramlich was absent and not voting, whereas he voted at the previous meeting.
- The FOMC reported investors marked up policy expectations due to stronger spending and output data.
Summary generated automatically from the two documents.