November 1–2 · Published November 22, 2011
BBBen S. BernankeNovember 1–2, 2011 FOMC Minutes
Our reading
The minutes read consistent with the statement because both documents describe the same economic conditions—moderate growth, weak labor markets, subdued inflation, and significant downside risks—and confirm the FOMC's unanimous decision to maintain its policy stance, including the maturity extension program and the federal funds rate target, with only minor adjustments to the statement's language to reflect the modest improvement in the outlook.
Our reading compares the minutes of the November 1–2 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Ben S. Bernanke
- William C. Dudley
- Elizabeth A. Duke
- Charles L. Evans ↓ dissented
- Mr. Evans dissented because he saw the high unemployment rate and the outlook for only weak economic growth as calling for additional policy accommodation at this meeting. Moreover, the longer the current situation of low resource utilization lasted, the more the economy's longer-term growth potential could be impaired. Furthermore, given current policy, his outlook was for inflation to come in below levels consistent with the Committee's dual mandate, bolstering the case for additional monetary easing at this time. He also believed policies with more-explicit forward guidance about the economic conditions under which exceptionally low levels of the funds rate could be maintained would improve the prospects for growth and employment and, while possibly admitting somewhat higher inflation for a time, would still safeguard price stability.
- Richard W. Fisher
- Narayana Kocherlakota
- Charles I. Plosser
- Sarah Bloom Raskin
- Daniel K. Tarullo
- Janet L. Yellen
From the minutes
FOMC minutes
Voting for this action: Ben Bernanke, William C. Dudley, Elizabeth Duke, Richard W. Fisher, Narayana Kocherlakota, Charles I. Plosser, Sarah Bloom Raskin, Daniel K. Tarullo, and Janet L. Yellen.
Voting against this action: Charles L. Evans.
Mr. Evans dissented because he saw the high unemployment rate and the outlook for only weak economic growth as calling for additional policy accommodation at this meeting. Moreover, the longer the current situation of low resource utilization lasted, the more the economy's longer-term growth potential could be impaired. Furthermore, given current policy, his outlook was for inflation to come in below levels consistent with the Committee's dual mandate, bolstering the case for additional monetary easing at this time. He also believed policies with more-explicit forward guidance about the economic conditions under which exceptionally low levels of the funds rate could be maintained would improve the prospects for growth and employment and, while possibly admitting somewhat higher inflation for a time, would still safeguard price stability.
It was agreed that the next meeting of the Committee would be held on Tuesday, December 13, 2011. The meeting adjourned at 10:30 a.m. on November 2, 2011.
What changed from the previous meeting’s minutes
- The FOMC voted unanimously to continue the maturity extension program, with only Charles L. Evans dissenting.
- The September dissents by Fisher, Kocherlakota, and Plosser were replaced by support for the policy action.
- The statement noted economic growth strengthened somewhat in the third quarter, a change from "remains slow" in September.
- The FOMC decided to retain the existing forward guidance on the federal funds rate, rejecting a shift to time-based language.
- The policy directive changed from "purchase" to "continue the maturity extension program it began in September."
- The meeting adjourned at 10:30 a.m., earlier than the September meeting's 12:30 p.m. adjournment.
Summary generated automatically from the two documents.