October 24–25 · Published November 15, 2006
Statement·Presser·Minutes
BBBen S. BernankeOctober 24–25, 2006 FOMC Minutes
Our reading
The minutes read more hawkish because they reveal deeper and more widespread concern among members about persistently high core inflation and the risk of inflation expectations drifting upward, emphasizing that the risks to the inflation outlook remained to the upside, whereas the statement's language was more balanced and forward-looking, suggesting inflation pressures would likely moderate over time.
Our reading compares the minutes of the October 24–25 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
- Donald L. Kohn
- Randall S. Kroszner
- Jeffrey M. Lacker ↑ dissented
- Mr. Lacker dissented because he believed that further tightening was needed to help ensure that core inflation declines to an acceptable rate in coming quarters.
- Frederic S. Mishkin
- Sandra Pianalto
- William Poole
- Kevin Warsh
- Janet L. Yellen
From the minutes
FOMC minutes
Secretary
Footnotes
1. Attended Tuesday's session only.Return to text
2. Attended Wednesday's session only.Return to text
What changed from the previous meeting’s minutes
- The September minutes noted core PCE inflation expected to rise at same pace in September as July and August.
- The October minutes reported the trade deficit widened to a record in August.
- The October minutes stated energy prices no longer had potential to sustain inflation pressures.
- The October minutes added discussion of quantifying an inflation objective, with no decisions reached.
- The October minutes noted downside risks to economic activity had diminished a little.
- The October minutes reported Mr. Poole voted for the action; he was absent from the September vote.
Summary generated automatically from the two documents.