September 20 · Published October 11, 2005
Statement·Presser·Minutes
AGAlan GreenspanSeptember 20, 2005 FOMC Minutes
Our reading
The minutes read somewhat more hawkish relative to the statement because they reveal deeper and more explicit concerns among participants about rising inflation risks—such as troubling survey evidence on inflation expectations, widening federal deficits, and upward pressures on intermediate goods—whereas the statement downplays these risks by emphasizing that core inflation remains low and longer-term expectations are contained.
Our reading compares the minutes of the September 20 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
- Alan Greenspan
- Donald L. Kohn
- Michael H. Moskow
- Mark W. Olson ↓ dissented
- He preferred that the Committee defer policy action at this meeting, pending the receipt of additional information on the economic effects resulting from the severe shock of Hurricane Katrina.
- Anthony M. Santomero
- Stern
From the minutes
FOMC minutes
Notation Vote
By notation vote completed on August 29, 2005, the Committee unanimously approved the minutes of the meeting of the Federal Open Market Committee held on August 9, 2005.
Vincent R. Reinhart
Secretary
What changed from the previous meeting’s minutes
- The federal funds rate target was raised from 3.5 percent to 3.75 percent.
- Mr. Olson dissented, preferring to defer action due to Hurricane Katrina.
- The staff lowered 2005 growth projections but raised 2006 forecasts for rebuilding.
- Near-term inflation expectations jumped in a September household survey.
- The statement characterized Hurricane Katrina's macroeconomic effects as essentially temporary.
- The next meeting was scheduled for November 1, 2005, instead of September 20.
Summary generated automatically from the two documents.