December 13 · Published January 3, 2012
Statement·Presser·Minutes
BBBen S. BernankeDecember 13, 2011 FOMC Minutes
Our reading
The minutes are consistent with the statement because they reflect the same key economic assessments and policy decisions, including moderate economic expansion, elevated unemployment, subdued inflation, ongoing global financial strains, and the decision to maintain the current policy stance (including the maturity extension program and low federal funds rate through mid-2013), with only minor modifications to the statement to reflect recent data.
Our reading compares the minutes of the December 13 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 continued to view additional policy accommodation as appropriate in circumstances where his outlook was for growth to be too slow to make sufficient progress in reducing the unemployment rate and for inflation to drop below levels consistent with the Committee's dual mandate. He continued to support the use of more-explicit forward guidance about the economic conditions under which the federal funds rate could be maintained in its current range, and he suggested that the Committee also consider additional asset purchases.
- Richard W. Fisher
- Narayana Kocherlakota
- Charles I. Plosser
- Sarah Bloom Raskin
- Daniel K. Tarullo
- Janet L. Yellen
From the minutes
FOMC minutes
The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools to promote a stronger economic recovery in a context of price stability."
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 continued to view additional policy accommodation as appropriate in circumstances where his outlook was for growth to be too slow to make sufficient progress in reducing the unemployment rate and for inflation to drop below levels consistent with the Committee's dual mandate. He continued to support the use of more-explicit forward guidance about the economic conditions under which the federal funds rate could be maintained in its current range, and he suggested that the Committee also consider additional asset purchases.
What changed from the previous meeting’s minutes
- November minutes noted global supply chain disruptions from Japan had diminished; December minutes noted slowing global economic growth.
- November minutes cited elevated financial market volatility; December minutes cited strains in global financial markets.
- December minutes reported labor market conditions improved with payroll gains for five months; November minutes reported continued weakness.
- December minutes noted several members said mid-2013 forward guidance might need adjustment; November minutes had no such statement.
- December minutes mentioned central bank currency swap lines eased dollar funding; November minutes did not.
- December minutes reported domestic banks increased commercial lending; November minutes reported loan demand remained weak.
Summary generated automatically from the two documents.