January 28, 2004 FOMC Statement

FOMC statement

FOMC statement

For immediate release

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 1 percent.

The Committee continues to believe that an accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity. The evidence accumulated over the intermeeting period confirms that output is expanding briskly, and briskly. Although new hiring remains subdued, other indicators suggest an improvement in the labor market appears to be improving modestly. market. Increases in core consumer prices are muted and expected to remain low.

The Committee perceives that the upside and downside risks to the attainment of sustainable growth for the next few quarters are roughly equal. The probability of an unwelcome fall in inflation has diminished in recent months and now appears almost equal to that of a rise in inflation. However, with With inflation quite low and resource use slack, the Committee believes that policy accommodation it can be maintained for a considerable period. patient in removing its policy accommodation.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Ben S. Bernanke; Susan S. Bies; J. Alfred Broaddus, Jr.; Roger W. Ferguson, Jr.; Edward M. Gramlich; Jack Guynn; Thomas M. Hoenig; Donald L. Kohn; Michael H. Moskow; Cathy E. Minehan; Mark W. Olson; Sandra Pianalto; and Robert T. Parry. William Poole.

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