August 10 · Published October 9, 2007
Statement·Presser·Minutes
BBBen S. BernankeAugust 10, 2007 FOMC Minutes
Our reading
The minutes read much more dovish than the statement because they provide a detailed, nuanced account of the FOMC's concerns about downside risks to growth, financial market fragility, and the potential for tighter credit conditions to restrain the economy, whereas the statement is a brief, formal communication that only hints at these concerns by noting "increased uncertainty" and the need to "act as needed."
Our reading compares the minutes of the August 10 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Ben S. Bernanke
- Rudolph M. Evans
- Timothy F. Geithner
- Thomas M. Hoenig
- Donald L. Kohn
- Randall S. Kroszner
- Frederic S. Mishkin
- William Poole
- Eric S. Rosengren
- Kevin Warsh
From the minutes
FOMC minutes
Votes against: None.
Mr. Fisher voted as alternate member.
Brian F. Madigan
Secretary
What changed from the previous meeting’s minutes
- The FOMC cut the federal funds rate target by 50 basis points to 4-3/4 percent.
- The FOMC dropped its assessment that inflation was "somewhat elevated" and the risk it would fail to moderate.
- The statement omitted an explicit balance of risks, citing heightened uncertainty about the economic outlook.
- The staff marked down its fourth-quarter and 2008 real GDP forecasts due to financial market turbulence.
- The FOMC held two conference calls on August 10 and 16 to address worsening money market strains.
- The August 16 statement said downside risks to growth had increased appreciably, without changing the rate target.
Summary generated automatically from the two documents.