June 28–29 · Published July 20, 2006
Statement·Presser·Minutes·Policy
BBBen S. BernankeJune 28–29, 2006 FOMC Minutes
Our reading
The minutes read consistent with the statement because both documents describe the same decision to raise the federal funds rate by 25 basis points to 5-1/4 percent, and they align on the rationale: economic growth moderating due to housing cooling and past rate/energy price increases, elevated core inflation, contained inflation expectations, and the need for potential future firming depending on incoming data. The minutes elaborate on the discussion behind these points but do not contradict the statement's content.
Our reading compares the minutes of the June 28–29 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
- Timothy F. Geithner
- Jack Guynn
- Donald L. Kohn
- Randall S. Kroszner
- Jeffrey M. Lacker
- Sandra Pianalto
- Kevin Warsh
- Janet L. Yellen
From the minutes
FOMC minutes
Notation Vote
By notation vote completed on May 30, 2006, the Committee unanimously approved the minutes of the Federal Open Market Committee meeting held on May 10, 2006.
Vincent R. Reinhart
Secretary
What changed from the previous meeting’s minutes
- Federal funds rate target raised from 5 percent to 5-1/4 percent.
- Core inflation forecasts for 2007 raised by 1/4 percentage point.
- Statement language shifted from "some further policy firming" to "some inflation risks remain."
- Dollar appreciated over intermeeting period instead of depreciating.
- Stock price indexes fell sharply instead of rising.
- Committee agreed to increase number of two-day FOMC meetings to four.
Summary generated automatically from the two documents.