December 12 · Published January 3, 2007
Statement·Presser·Minutes
BBBen S. BernankeDecember 12, 2006 FOMC Minutes
Our reading
The minutes read somewhat more hawkish relative to the statement because they reveal that all members viewed core inflation as "uncomfortably high" and emphasized that the risks to the inflation outlook remained to the upside, while also noting that the possibility of tight labor markets sustaining upward pressure on nominal labor costs was an upside risk to the expected moderation in inflation—details that go beyond the statement's more balanced language about inflation pressures likely moderating over time.
Our reading compares the minutes of the December 12 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
Notation Vote
By notation vote completed on November 14, 2006, the Committee unanimously approved the minutes of the FOMC meeting held on October 24-25, 2006.
Vincent R. Reinhart
Secretary
What changed from the previous meeting’s minutes
- The October minutes reported core PCE inflation unchanged in September; December minutes reported it fell in September and October.
- The December minutes noted hourly compensation was revised down substantially for Q2, now estimated to have declined.
- The December minutes reported the dollar fell against major currencies; October minutes reported it rose.
- The December minutes described the housing market cooling as "substantial"; October minutes did not use that term.
- The December minutes stated recent indicators had been "mixed"; October minutes said data came in "broadly as anticipated."
- The December minutes noted mortgage debt grew at its lowest pace since the late 1990s; October minutes did not.
Summary generated automatically from the two documents.