December 15–16 · Published January 6, 2009
Statement·Presser·Minutes
BBBen S. BernankeDecember 15–16, 2008 FOMC Minutes
Our reading
The minutes are consistent with the statement because they detail the FOMC's decision to set a target range of 0 to 1/4 percent for the federal funds rate, as stated, and elaborate on the rationale—deteriorating economic conditions, diminished inflationary pressures, and the use of additional tools like asset purchases and communication—that align with the statement's content.
Our reading compares the minutes of the December 15–16 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
_____________________________
Brian F. Madigan
Secretary
1. Attended Tuesday's session. Return to text 2. Attended the portion of the meeting relating to the zero lower bound on nominal interest rates. Return to text 3. Attended the meeting through the discussion of the zero lower bound on nominal interest rates. Return to text
What changed from the previous meeting’s minutes
- The federal funds rate target changed from 1 percent to a range of 0 to 1/4 percent.
- The FOMC directed the Desk to purchase up to $100 billion in GSE debt and $500 billion in agency-guaranteed MBS.
- The directive shifted from targeting an average rate to seeking conditions consistent with a trading range.
- The statement added that weak economic conditions would likely warrant exceptionally low rates for some time.
- The FOMC began evaluating potential purchases of longer-term Treasury securities.
- The next meeting was scheduled for January 27-28, 2009, instead of December 16, 2008.
Summary generated automatically from the two documents.