September 16 · Published October 7, 2008
Statement·Presser·Minutes
BBBen S. BernankeSeptember 16, 2008 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the FOMC's decision to maintain the federal funds rate at 2 percent, acknowledge heightened financial market strains and weakened labor markets, and express balanced concerns about downside risks to growth and upside risks to inflation, while noting that inflation is expected to moderate over time.
Our reading compares the minutes of the September 16 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Ben S. Bernanke
- Christine M. Cumming
- Elizabeth A. Duke
- Richard W. Fisher
- Donald L. Kohn
- Randall S. Kroszner
- Sandra Pianalto
- Charles I. Plosser
- Stern
- Kevin Warsh
From the minutes
FOMC minutes
The meeting adjourned at 12:30 p.m.
Notation Vote
By notation vote completed on August 25, 2008, the Committee unanimously approved the minutes of the FOMC meeting held on August 5, 2008.
_____________________________ Brian F. Madigan Secretary
What changed from the previous meeting’s minutes
- Fannie Mae and Freddie Mac were placed into conservatorship on September 7, replacing the earlier Treasury support plan.
- Lehman Brothers filed for bankruptcy and Bank of America announced acquisition of Merrill Lynch before the meeting.
- Federal Reserve expanded collateral for Primary Dealer Credit Facility and TSLF, and increased TSLF auction size and frequency.
- M2 contracted slightly in August, reversing the moderate expansion seen in July.
- Staff marked down 2009 real GDP growth forecast slightly, whereas previous forecast cut second-half 2008 and 2009.
- Vote was unanimous, with no dissents, compared to Mr. Fisher's dissent in August.
Summary generated automatically from the two documents.