Release Date: April 25June 20, 2012For immediate releaseInformation received since the Federal Open Market Committee met i...
Release Date: March 13April 25, 2012For immediate releaseInformation received since the Federal Open Market Committee met ...
Release Date: January 25March 13, 2012For immediate releaseInformation received since the Federal Open Market Committee me...
Release Date: December 13, 2011January 25, 2012For immediate releaseInformation received since the Federal Open Market Com...
time period over which economic conditions are likely to warrant exceptionally low levels of thefederal funds rate.
Release Date: November 2December 13, 2011For immediate releaseInformation received since the Federal Open Market Committee...
Release Date: September 21November 2, 2011For immediate releaseInformation received since the Federal Open Market Committe...
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. ...
Release Date: August 9September 21, 2011For immediate releaseInformation received since the Federal Open Market Committee ...
The Committee discussed the range of policy tools available to promote a stronger economicrecovery in a context of price s...
Release Date: June 22August 9, 2011For immediate releaseInformation received since the Federal Open Market Committee met i...
Kocherlakota; Charles I. PlosserEvans; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L.Yellen.Voting against the action...
Release Date: April 27June 22, 2011For immediate releaseInformation received since the Federal Open Market Committee met i...
inflation, over time, is at levels consistent with its mandateneeded to best foster maximumemployment and price stability....
Release Date: March 15April 27, 2011For immediate releaseInformation received since the Federal Open Market Committee met ...
Release Date: January 26March 15, 2011For immediate releaseInformation received since the Federal Open Market Committee me...
Release Date: December 14, 2010January 26, 2011For immediate releaseInformation received since the Federal Open Market Com...
Release Date: November 3December 14, 2010For immediate releaseInformation received since the Federal Open Market Committee...
Release Date: September 21November 3, 2010For immediate releaseInformation received since the Federal Open Market Committe...
of exceptionally low levels of the federal funds rate for an extended period was no longerwarranted and will lead to futur...
Release Date: August 10September 21, 2010For immediate releaseInformation received since the Federal Open Market Committee...
Release Date: June 23August 10, 2010For immediate releaseInformation received since the Federal Open Market Committee met ...
Release Date: April 28June 23, 2010For immediate releaseInformation received since the Federal Open Market Committee met i...
Release Date: March 16April 28, 2010For immediate releaseInformation received since the Federal Open Market Committee met ...
Release Date: January 27March 16, 2010For immediate releaseInformation received since the Federal Open Market Committee me...
an extended period was no longer warranted because it could lead to the buildup of financialimbalances and increase risks ...
Release Date: December 16, 2009January 27, 2010For immediate releaseInformation received since the Federal Open Market Com...
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; James Bullard...
Release Date: November 4December 16, 2009For immediate releaseInformation received since the Federal Open Market Committee...
The Federal Reserve is prepared to modify these plans if necessary to support financial stabilityand economic growth.Votin...
Release Date: September 23November 4, 2009For immediate releaseInformation received since the Federal Open Market Committe...
Release Date: August 12September 23, 2009For immediate releaseInformation received since the Federal Open Market Committee...
Release Date: June 24August 12, 2009For immediate releaseInformation received since the Federal Open Market Committee met ...
Release Date: April 29June 24, 2009For immediate releaseInformation received since the Federal Open Market Committee met i...
Release Date: March 18April 29, 2009For immediate releaseInformation received since the Federal Open Market Committee met ...
FOMC Statements (March 2008 to June 2012)
FOMC Statements (March 2008 to June 2012)
FOMC Statements (March 2008 to June 2012)
FOMC Statements (March 2008 to June 2012)
FOMC Statements (March 2008 to June 2012)
FOMC Statements (March 2008 to June 2012)
FOMC Statements (March 2008 to June 2012)
FOMC Statements (March 2008 to June 2012)
FOMC Statements (March 2008 to June 2012)
FOMC Statements (March 2008 to June 2012)
FOMC Statements (March 2008 to June 2012)
FOMC Statements (March 2008 to June 2012)
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FOMC Statements (March 2008 to June 2012)

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Word-for-word comparison of successive Federal Open Market Committee (FOMC) statements since March 2008.

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FOMC Statements (March 2008 to June 2012)

  1. 1. Release Date: April 25June 20, 2012For immediate releaseInformation received since the Federal Open Market Committee met in MarchApril suggests thatthe economy has been expanding moderately. Labor market conditions have improved this year.However, growth in employment has slowed in recent months;, and the unemployment rate hasdeclined but remains elevated. Household spending and businessBusiness fixed investmenthavehas continued to advance. Household spending appears to be rising at a somewhat slowerpace than earlier in the year. Despite some signs of improvement, the housing sector remainsdepressed. Inflation has picked up somewhatdeclined, mainly reflecting higherlower prices ofcrude oil and gasoline. However,, and longer-term inflation expectations have remained stable.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. The Committee expects economic growth to remain moderate over comingquarters and then to pick up very gradually. Consequently, the Committee anticipates that theunemployment rate will decline graduallyonly slowly toward levels that it judges to be consistentwith its dual mandate. StrainsFurthermore, strains in global financial markets continue to posesignificant downside risks to the economic outlook. The increase in oil and gasoline prices earlierthis year is expected to affect inflation only temporarily, and the Committee anticipates thatsubsequently inflation over the medium term will run at or below the rate that it judges mostconsistent with its dual mandate.To support a stronger economic recovery and to help ensure that inflation, over time, is at the ratemost consistent with its dual mandate, the Committee expects to maintain a highlyaccommodative stance for monetary policy. In particular, the Committee decided today to keepthe target range for the federal funds rate at 0 to 1/4 percent and currently anticipates thateconomic conditions--including low rates of resource utilization and a subdued outlook forinflation over the medium run--are likely to warrant exceptionally low levels for the federal fundsrate at least through late 2014.The Committee also decided to continue through the end of the year its program to extend theaverage maturity of its holdings of securities as announced in September.. Specifically, theCommittee intends to purchase Treasury securities with remaining maturities of 6 years to 30years at the current pace and to sell or redeem an equal amount of Treasury securities withremaining maturities of approximately 3 years or less. This continuation of the maturity extensionprogram should put downward pressure on longer-term interest rates and help to make broaderfinancial conditions more accommodative. The Committee is maintaining its existing policiespolicyof reinvesting principal payments from its holdings of agency debt and agency mortgage-backedsecurities in agency mortgage-backed securities and of rolling over maturing Treasury securitiesat auction.. The Committee will regularly review the size and composition of its securities holdingsand is prepared to adjust those holdingstake further action as appropriate to promote a strongereconomic recovery and sustained improvement in labor market conditions in a context of pricestability.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Jerome H.Powell; Sarah Bloom Raskin; Jeremy C. Stein; Daniel K. Tarullo; John C. Williams; and Janet L.Yellen. Voting against the action was Jeffrey M. Lacker, who does not anticipate that economicconditions are likely to warrant exceptionally low levels of the federal funds rate through late2014opposed continuation of the maturity extension program.
  2. 2. Release Date: March 13April 25, 2012For immediate releaseInformation received since the Federal Open Market Committee met in JanuaryMarch suggeststhat the economy has been expanding moderately. Labor market conditions have improvedfurtherin recent months; the unemployment rate has declined notably in recent months butremains elevated. Household spending and business fixed investment have continued toadvance. TheDespite some signs of improvement, the housing sector remains depressed.Inflation has been subdued in recent months, althoughpicked up somewhat, mainly reflectinghigher prices of crude oil and gasoline have increased lately. Longer. However, longer-terminflation expectations have remained stable.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. The Committee expects moderate economic growth to remain moderate overcoming quarters and consequently then to pick up gradually. Consequently, the Committeeanticipates that the unemployment rate will decline gradually toward levels that the Committee itjudges to be consistent with its dual mandate. Strains in global financial markets have eased,though they continue to pose significant downside risks to the economic outlook. The recentincrease in oil and gasoline prices will push up earlier this year is expected to affect inflation onlytemporarily, butand the Committee anticipates that subsequently inflation will run at or below therate that it judges most consistent with its dual mandate.To support a stronger economic recovery and to help ensure that inflation, over time, is at the ratemost consistent with its dual mandate, the Committee expects to maintain a highlyaccommodative stance for monetary policy. In particular, the Committee decided today to keepthe target range for the federal funds rate at 0 to 1/4 percent and currently anticipates thateconomic conditions--including low rates of resource utilization and a subdued outlook forinflation over the medium run--are likely to warrant exceptionally low levels for the federal fundsrate at least through late 2014.The Committee also decided to continue its program to extend the average maturity of itsholdings of securities as announced in September. The Committee is maintaining its existingpolicies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasurysecurities at auction. The Committee will regularly review the size and composition of itssecurities holdings and is prepared to adjust those holdings as appropriate to promote a strongereconomic recovery in a context of price stability.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Sarah BloomRaskin; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action wasJeffrey M. Lacker, who does not anticipate that economic conditions are likely to warrantexceptionally low levels of the federal funds rate through late 2014.
  3. 3. Release Date: January 25March 13, 2012For immediate releaseInformation received since the Federal Open Market Committee met in DecemberJanuarysuggests that the economy has been expanding moderately, notwithstanding some slowing inglobal growth. While indicators point to some further improvement in overall labor. Labor marketconditions, have improved further; the unemployment rate has declined notably in recent monthsbut remains elevated. Household spending has continued to advance, but growth in and businessfixed investment has slowed, and thehave continued to advance. The housing sector remainsdepressed. Inflation has been subdued in recent months, although prices of crude oil andlongergasoline have increased lately. Longer-term inflation expectations have remained stable.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. The Committee expects moderate economic growth over coming quarters to bemodest and consequently anticipates that the unemployment rate will decline only graduallytoward levels that the Committee judges to be consistent with its dual mandate. Strains in globalfinancial markets have eased, though they continue to pose significant downside risks to theeconomic outlook. The The recent increase in oil and gasoline prices will push up inflationtemporarily, but the Committee also anticipates that over coming quarters,subsequently inflationwill run at levels at or below thosethe rate that it judges most consistent with the Committeesitsdual mandate.To support a stronger economic recovery and to help ensure that inflation, over time, is atlevelsthe rate most consistent with theits dual mandate, the Committee expects to maintain ahighly accommodative stance for monetary policy. In particular, the Committee decided today tokeep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates thateconomic conditions--including low rates of resource utilization and a subdued outlook forinflation over the medium run--are likely to warrant exceptionally low levels for the federal fundsrate at least through late 2014.The Committee also decided to continue its program to extend the average maturity of itsholdings of securities as announced in September. The Committee is maintaining its existingpolicies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasurysecurities at auction. The Committee will regularly review the size and composition of itssecurities holdings and is prepared to adjust those holdings as appropriate to promote a strongereconomic recovery in a context of price stability.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Sarah BloomRaskin; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action wasJeffrey M. Lacker, who preferred to omit the description of the time period over whichdoes notanticipate that economic conditions are likely to warrant exceptionally low levels of the federalfunds rate through late 2014.
  4. 4. Release Date: December 13, 2011January 25, 2012For immediate releaseInformation received since the Federal Open Market Committee met in NovemberDecembersuggests that the economy has been expanding moderately, notwithstanding some apparentslowing in global growth. While indicators point to some further improvement in overall labormarket conditions, the unemployment rate remains elevated. Household spending has continuedto advance, but growth in business fixed investment appears to be increasing less rapidlyhasslowed, and the housing sector remains depressed. Inflation has moderated since earlier in theyearbeen subdued in recent months, and longer-term inflation expectations have remainedstable.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. The Committee continues to expect a moderate pace ofexpects economic growthover coming quarters to be modest and consequently anticipates that the unemployment rate willdecline only gradually toward levels that the Committee judges to be consistent with its dualmandate. Strains in global financial markets continue to pose significant downside risks to theeconomic outlook. The Committee also anticipates that inflation will settle, over coming quarters,inflation will run at levels at or below those consistent with the Committee’sCommittees dualmandate. However, the Committee will continue to pay close attention to the evolution of inflationand inflation expectations.To support a stronger economic recovery and to help ensure that inflation, over time, is at levelsconsistent with the dual mandate, the Committee decided todayexpects to maintain a highlyaccommodative stance for monetary policy. In particular, the Committee decided today to keepthe target range for the federal funds rate at 0 to 1/4 percent and currently anticipates thateconomic conditions--including low rates of resource utilization and a subdued outlook forinflation over the medium run--are likely to warrant exceptionally low levels for the federal fundsrate at least through late 2014.The Committee also decided to continue its program to extend the average maturity of itsholdings of securities as announced in September. The Committee is maintaining its existingpolicies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasurysecurities at auction. The Committee will regularly review the size and composition of itssecurities holdings and is prepared to adjust those holdings as appropriate to promote a strongereconomic recovery in a context of price stability.The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percentand currently anticipates that economic conditions--including low rates of resource utilization anda subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levelsfor the federal funds rate at least through mid-2013.The Committee will continue to assess the economic outlook in light of incoming information andis prepared to employ its tools to promote a stronger economic recovery in a context of pricestability.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Richard W. Fisher; Narayana Kocherlakota; Charles I.PlosserDennis P. Lockhart; Sandra Pianalto; Sarah Bloom Raskin; Daniel K. Tarullo; John C.Williams; and Janet L. Yellen. Voting against the action was Charles L. EvansJeffrey M. Lacker,who supported additional policy accommodation at thispreferred to omit the description of the
  5. 5. time period over which economic conditions are likely to warrant exceptionally low levels of thefederal funds rate.
  6. 6. Release Date: November 2December 13, 2011For immediate releaseInformation received since the Federal Open Market Committee met in SeptemberindicatesNovember suggests that economic growth strengthened somewhat in the third quarter,reflecting in part a reversal of the temporary factors that had weighed on growth earlier in theyear. Nonetheless, recenteconomy has been expanding moderately, notwithstanding someapparent slowing in global growth. While indicators point to continuing weaknesssomeimprovement in overall labor market conditions, and the unemployment rate remains elevated.Household spending has increased at a somewhat faster pace in recent months. Businessinvestment in equipment and software has continued to expandadvance, but business fixedinvestment in nonresidential structures is still weak,appears to be increasing less rapidly and thehousing sector remains depressed. Inflation appears to havehas moderated since earlier in theyear as prices of energy and some commodities have declined from their peaks. Longer, andlonger-term inflation expectations have remained stable.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. The Committee continues to expect a moderate pace of economic growth overcoming quarters and consequently anticipates that the unemployment rate will decline onlygradually toward levels that the Committee judges to be consistent with its dual mandate.Moreover, there areStrains in global financial markets continue to pose significant downside risksto the economic outlook, including strains in global financial markets. The Committee alsoanticipates that inflation will settle, over coming quarters, at levels at or below those consistentwith the Committees dual mandate as the effects of past energy and other commodity priceincreases dissipate further.Committee’s dual mandate. However, the Committee will continue topay close attention to the evolution of inflation and inflation expectations.To support a stronger economic recovery and to help ensure that inflation, over time, is at levelsconsistent with the dual mandate, the Committee decided today to continue its program to extendthe average maturity of its holdings of securities as announced in September. The Committee ismaintaining its existing policies of reinvesting principal payments from its holdings of agency debtand agency mortgage-backed securities in agency mortgage-backed securities and of rolling overmaturing Treasury securities at auction. The Committee will regularly review the size andcomposition of its securities holdings and is prepared to adjust those holdings as appropriate.The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percentand currently anticipates that economic conditions--including low rates of resource utilization anda subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levelsfor the federal funds rate at least through mid-2013.The Committee will continue to assess the economic outlook in light of incoming information andis prepared to employ its tools to promote a stronger economic recovery in a context of pricestability.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Richard W. Fisher; Narayana Kocherlakota; Charles I.Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen. Voting against the actionwas Charles L. Evans, who supported additional policy accommodation at this time.
  7. 7. Release Date: September 21November 2, 2011For immediate releaseInformation received since the Federal Open Market Committee met in AugustSeptemberindicates that economic growth remains slow. Recentstrengthened somewhat in the third quarter,reflecting in part a reversal of the temporary factors that had weighed on growth earlier in theyear. Nonetheless, recent indicators point to continuing weakness in overall labor marketconditions, and the unemployment rate remains elevated. Household spending has beenincreasingincreased at only a modestsomewhat faster pace in recent months despite somerecovery in sales of motor vehicles as supply-chain disruptions eased. Investment. Businessinvestment in equipment and software has continued to expand, but investment in nonresidentialstructures is still weak, and the housing sector remains depressed. However, businessinvestment in equipment and software continues to expand. Inflation appears to have moderatedsince earlier in the year as prices of energy and some commodities have declined from theirpeaks. Longer-term inflation expectations have remained stable.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. The Committee continues to expect some pickup in thea moderate pace ofrecoveryeconomic growth over coming quarters butand consequently anticipates that theunemployment rate will decline only gradually toward levels that the Committee judges to beconsistent with its dual mandate. Moreover, there are significant downside risks to the economicoutlook, including strains in global financial markets. The Committee also anticipates that inflationwill settle, over coming quarters, at levels at or below those consistent with the Committees dualmandate as the effects of past energy and other commodity price increases dissipate further.However, the Committee will continue to pay close attention to the evolution of inflation andinflation expectations.To support a stronger economic recovery and to help ensure that inflation, over time, is at levelsconsistent with the dual mandate, the Committee decided today to continue its program to extendthe average maturity of its holdings of securities. as announced in September. The Committeeintends to purchase, by the endis maintaining its existing policies of June 2012, $400billionreinvesting principal payments from its holdings of Treasury securities with remainingmaturities of 6 years to 30 yearsagency debt and to sell an equal amount of Treasuryagencymortgage-backed securities in agency mortgage-backed securities with remaining maturities of 3years or less. This program should put downward pressure on longer-term interest rates and helpmake broader financial conditions more accommodativeof rolling over maturing Treasurysecurities at auction. The Committee will regularly review the size and composition of itssecurities holdings and is prepared to adjust those holdings as appropriate.To help support conditions in mortgage markets, the Committee will now reinvest principalpayments from its holdings of agency debt and agency mortgage-backed securities in agencymortgage-backed securities. In addition, the Committee will maintain its existing policy of rollingover maturing Treasury securities at auction.The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percentand currently anticipates that economic conditions--including low rates of resource utilization anda subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levelsfor the federal funds rate at least through mid-2013.The Committee discussed the range of policy tools available to promote a stronger economicrecovery in a context of price stability. It will continue to assess the economic outlook in light ofincoming information and is prepared to employ its tools as appropriateto promote a strongereconomic recovery in a context of price stability.
  8. 8. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Richard W. Fisher; Narayana Kocherlakota; CharlesL. EvansI. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen. Voting againstthe action were Richard W. Fisher, Narayana Kocherlakota, andwas Charles I. PlosserL. Evans,who did not supportsupported additional policy accommodation at this time.
  9. 9. Release Date: August 9September 21, 2011For immediate releaseInformation received since the Federal Open Market Committee met in JuneAugust indicates thateconomic growth so far this year has been considerably slower than the Committee hadexpected. Indicators suggest a deterioration in remains slow. Recent indicators point tocontinuing weakness in overall labor market conditions in recent months, and the unemploymentrate has moved up. remains elevated. Household spending has flattened out, investmentbeenincreasing at only a modest pace in recent months despite some recovery in sales of motorvehicles as supply-chain disruptions eased. Investment in nonresidential structures is still weak,and the housing sector remains depressed. However, business investment in equipment andsoftware continues to expand. Temporary factors, including the damping effect of higher foodand energy prices on consumer purchasing power and spending as well as supply chaindisruptions associated with the tragic events in Japan, appear to account for only some of therecent weakness in economic activity. Inflation picked upappears to have moderated sinceearlier in the year, mainly reflecting higher prices for some commodities and imported goods, aswell as the supply chain disruptions. More recently, inflation has moderated as prices of energyand some commodities have declined from their earlier peaks. Longer-term inflation expectationshave remained stable.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. The Committee now expects a somewhat slower continues to expect some pickupin the pace of recovery over coming quarters than it did at the time of the previous meetingandbut anticipates that the unemployment rate will decline only gradually toward levels that theCommittee judges to be consistent with its dual mandate. Moreover, there are significantdownside risks to the economic outlook have increased, including strains in global financialmarkets. The Committee also anticipates that inflation will settle, over coming quarters, at levelsat or below those consistent with the Committees dual mandate as the effects of past energy andother commodity price increases dissipate further. However, the Committee will continue to payclose attention to the evolution of inflation and inflation expectations.To promote the ongoingsupport a stronger economic recovery and to help ensure that inflation,over time, is at levels consistent with itsthe dual mandate, the Committee decided today to extendthe average maturity of its holdings of securities. The Committee intends to purchase, by the endof June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 yearsand to sell an equal amount of Treasury securities with remaining maturities of 3 years or less.This program should put downward pressure on longer-term interest rates and help make broaderfinancial conditions more accommodative. The Committee will regularly review the size andcomposition of its securities holdings and is prepared to adjust those holdings as appropriate.To help support conditions in mortgage markets, the Committee will now reinvest principalpayments from its holdings of agency debt and agency mortgage-backed securities in agencymortgage-backed securities. In addition, the Committee will maintain its existing policy of rollingover maturing Treasury securities at auction.The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4percent. The Committee and currently anticipates that economic conditions--including low ratesof resource utilization and a subdued outlook for inflation over the medium run--are likely towarrant exceptionally low levels for the federal funds rate at least through mid-2013. TheCommittee also will maintain its existing policy of reinvesting principal payments from itssecurities holdings. The Committee will regularly review the size and composition of its securitiesholdings and is prepared to adjust those holdings as appropriate.
  10. 10. The Committee discussed the range of policy tools available to promote a stronger economicrecovery in a context of price stability. It will continue to assess the economic outlook in light ofincoming information and is prepared to employ theseits tools as appropriate.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Sarah Bloom Raskin; Daniel K.Tarullo; and Janet L. Yellen.Voting against the action were: Richard W. Fisher, Narayana Kocherlakota, and Charles I.Plosser, who would have preferred to continue to describe economic conditions as likely towarrant exceptionally low levels for the federal funds rate for an extended period.did not support additional policy accommodation at this time.
  11. 11. Release Date: June 22August 9, 2011For immediate releaseInformation received since the Federal Open Market Committee met in April June indicates thatthe economic recovery is continuing at a moderate pace, though somewhat more slowly growthso far this year has been considerably slower than the Committee had expected. Also, recentIndicators suggest a deterioration in overall labor market indicators have been weaker thananticipated. The slower pace ofconditions in recent months, and the unemployment rate hasmoved up. Household spending has flattened out, investment in nonresidential structures is stillweak, and the recovery reflects in parthousing sector remains depressed. However, businessinvestment in equipment and software continues to expand. Temporary factors that are likely tobe temporary, including the damping effect of higher food and energy prices on consumerpurchasing power and spending as well as supply chain disruptions associated with the tragicevents in Japan. Household spending and business investment in equipment and softwarecontinue, appear to expand. However, investment in nonresidential structures is still weak,andaccount for only some of the housing sector continues to be depressed. recent weakness ineconomic activity. Inflation has picked up earlier in recent months, the year, mainlyreflecting higher prices forsomefor some commodities and imported goods, as well as the recentsupply chain disruptions. However, longer More recently, inflation has moderated as prices ofenergy and some commodities have declined from their earlier peaks. Longer-term inflationexpectations have remained stable.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. The unemployment rate remains elevated; however, the Committee now expectsthe a somewhat slower pace of recovery to pick up over coming quarters than it did at the time ofthe previous meeting and anticipates that the unemployment rate to resume its gradualwill declineonly gradually toward levels that the Committee judges to be consistent with its dualmandate. Inflation has moved up recently, but Moreover, downside risks to the economicoutlook have increased. The Committee also anticipates that inflation will subside tosettle, overcoming quarters, at levels at or below those consistent with the Committees dual mandate as theeffects of past energy and other commodity price increases dissipate. further. However, theCommittee will continue to pay close attention to the evolution of inflation and inflationexpectations.To promote the ongoing economic recovery and to help ensure that inflation, over time, is atlevels consistent with its mandate, the Committee decided today to keep the target range for thefederal funds rate at 0 to 1/4 percent. The Committee continues to anticipatecurrentlyanticipates that economic conditions--including low rates of resource utilization and a subduedoutlook for inflation over the medium run--are likely to warrant exceptionally low levels for thefederal funds rate for an extended period. at least through mid-2013. The Committee willcomplete its purchases of $600 billion of longer-term Treasury securities by the end of this monthandalso will maintain its existing policy of reinvesting principal payments from its securitiesholdings. The Committee will regularly review the size and composition of its securities holdingsand is prepared to adjust those holdings as appropriate.The Committee discussed the range of policy tools available to promote a stronger economicrecovery in a context of price stability. It will monitorcontinue to assess the economic outlook inlight of incoming information and financial developments and will actis prepared to employ thesetools as needed to best foster maximum employment and price stability.appropriate.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Richard W. Fisher; Narayana
  12. 12. Kocherlakota; Charles I. PlosserEvans; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L.Yellen.Voting against the action were: Richard W. Fisher, Narayana Kocherlakota, and Charles I.Plosser, who would have preferred to continue to describe economic conditions as likely towarrant exceptionally low levels for the federal funds rate for an extended period.
  13. 13. Release Date: April 27June 22, 2011For immediate releaseInformation received since the Federal Open Market Committee met in March April indicates thatthe economic recovery is proceedingcontinuing at a moderate pace and overall conditions in ,though somewhat more slowly than the Committee had expected. Also, recent labor marketindicators have been weaker than anticipated. The slower pace of the recovery reflects in partfactors that are improving gradually. likely to be temporary, including the damping effect of higherfood and energy prices on consumer purchasing power and spending as well as supply chaindisruptions associated with the tragic events in Japan. Household spending and businessinvestment in equipment and software continue to expand. However, investment innonresidential structures is still weak, and the housing sector continues to bedepressed. Commodity prices have risen significantly since last summer, and concerns aboutglobal supplies of crude oil have contributed to a further increase in oil prices since theCommittee met in March. Inflation has picked up in recent months, but mainly reflecting higherprices forsome commodities and imported goods, as well as the recent supply chaindisruptions. However, longer-term inflation expectations have remained stable and measures ofunderlying inflation are still subdued.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. The unemployment rate remains elevated,; however, the Committee expects thepace of recovery to pick up over coming quarters and measures of underlying inflation continue tobe somewhat low, relative tothe unemployment rate to resume its gradual decline toward levelsthat the Committee judges to be consistent, over the longer run, with its dual mandate. Increasesin the prices Inflation has moved up recently, but the Committee anticipates that inflation willsubside to levels at or below those consistent with the Committees dual mandate as the effectsof past energy and other commodities have pushed up inflation in recent months. The Committeeexpects these effects to be transitory, but it will commodity price increases dissipate. However,the Committee will continue to pay close attention to the evolution of inflation and inflationexpectations. The Committee continues to anticipate a gradual return to higher levels of resourceutilization in a context of price stability.To promote a stronger pace ofthe ongoing economic recovery and to help ensure that inflation,over time, is at levels consistent with its mandate, the Committee decided today to continueexpanding its holdings of securities as announced in November. In particular,keep theCommittee is maintaining its existing policy of reinvesting principal payments from its securitiesholdingstarget range for the federal funds rate at 0 to 1/4 percent. The Committee continues toanticipate that economic conditions--including low rates of resource utilization and will a subduedoutlook for inflation over the medium run--are likely to warrant exceptionally low levels for thefederal funds rate for an extended period. The Committee will complete its purchases of $600billion of longer-term Treasury securities by the end of the current quarter.this month and willmaintain its existing policy of reinvesting principal payments from its securities holdings. TheCommittee will regularly review the size and composition of its securities holdings in light ofincoming information and is prepared to adjust those holdings as needed to best foster maximumemployment and price stability.appropriate.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels for the federal funds rate for an extended period.The Committee will continue to monitor the economic outlook and financial developments and willemploy its policy toolsact as necessary to support the economic recovery and to help ensure that
  14. 14. inflation, over time, is at levels consistent with its mandateneeded to best foster maximumemployment and price stability.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Richard W. Fisher; NarayanaKocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen.
  15. 15. Release Date: March 15April 27, 2011For immediate releaseInformation received since the Federal Open Market Committee met in January suggestsMarchindicates that the economic recovery is onproceeding at a firmer footing,moderate pace andoverall conditions in the labor market appear to beare improving gradually. Household spendingand business investment in equipment and software continue to expand. However, investment innonresidential structures is still weak, and the housing sector continues to bedepressed. Commodity prices have risen significantly since thelast summer, and concerns aboutglobal supplies of crude oil have contributed to a sharp run-upfurther increase in oil prices sincethe Committee met in March. Inflation has picked up in recent weeks. Nonetheless,months, butlonger-term inflation expectations have remained stable, and measures of underlying inflationhave beenare still subdued.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. Currently, the The unemployment rate remains elevated, and measures ofunderlying inflation continue to be somewhat low, relative to levels that the Committee judges tobe consistent, over the longer run, with its dual mandate. The recent increases Increases in theprices of energy and other commodities are currently putting upward pressure onhave pushed upinflation. in recent months. The Committee expects these effects to be transitory, but it will payclose attention to the evolution of inflation and inflation expectations. The Committee continuesto anticipate a gradual return to higher levels of resource utilization in a context of price stability.To promote a stronger pace of economic recovery and to help ensure that inflation, over time, isat levels consistent with its mandate, the Committee decided today to continue expanding itsholdings of securities as announced in November. In particular, the Committee is maintaining itsexisting policy of reinvesting principal payments from its securities holdings and intends topurchasewill complete purchases of $600 billion of longer-term Treasury securities by the end ofthe secondcurrent quarter of 2011.. The Committee will regularly review the pacesize andcomposition of its securities purchases and the overall size of the asset-purchaseprogramholdings in light of incoming information and will is prepared to adjust the programthoseholdings as needed to best foster maximum employment and price stability.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels for the federal funds rate for an extended period.The Committee will continue to monitor the economic outlook and financial developments and willemploy its policy tools as necessary to support the economic recovery and to help ensure thatinflation, over time, is at levels consistent with its mandate.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Richard W. Fisher; NarayanaKocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen.
  16. 16. Release Date: January 26March 15, 2011For immediate releaseInformation received since the Federal Open Market Committee met in DecemberconfirmsJanuary suggests that the economic recovery is continuing, though at on a rate that hasbeen insufficient to bring about a significant improvementfirmer footing, and overall conditions inthe labor market conditions. Growth in householdappear to be improving gradually. Householdspending picked up late last year, but remains constrained by high unemployment, modestincome growth, lower housing wealth, and tight credit. Business spending on and businessinvestment in equipment and software is rising, whilecontinue to expand. However, investment innonresidential structures is still weak. Employers remain reluctant to add to payrolls. The, and thehousing sector continues to be depressed. Although commodityCommodity prices have risensignificantly since the summer, and concerns about global supplies of crude oil have contributedto a sharp run-up in oil prices in recent weeks. Nonetheless, longer-term inflation expectationshave remained stable, and measures of underlying inflation have been trendingdownwardsubdued.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. Currently, the unemployment rate isremains elevated, and measures of underlyinginflation arecontinue to be somewhat low, relative to levels that the Committee judges to beconsistent, over the longer run, with its dual mandate. Although The recent increases in the pricesof energy and other commodities are currently putting upward pressure on inflation. TheCommittee anticipatesexpects these effects to be transitory, but it will pay close attention to theevolution of inflation and inflation expectations. The Committee continues to anticipate a gradualreturn to higher levels of resource utilization in a context of price stability, progress toward itsobjectives has been disappointingly slow.To promote a stronger pace of economic recovery and to help ensure that inflation, over time, isat levels consistent with its mandate, the Committee decided today to continue expanding itsholdings of securities as announced in November. In particular, the Committee is maintaining itsexisting policy of reinvesting principal payments from its securities holdings and intends topurchase $600 billion of longer-term Treasury securities by the end of the second quarter of2011. The Committee will regularly review the pace of its securities purchases and the overallsize of the asset-purchase program in light of incoming information and will adjust the program asneeded to best foster maximum employment and price stability.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels for the federal funds rate for an extended period.The Committee will continue to monitor the economic outlook and financial developments and willemploy its policy tools as necessary to support the economic recovery and to help ensure thatinflation, over time, is at levels consistent with its mandate.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Richard W. Fisher; NarayanaKocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; Kevin M. Warsh; andJanet L. Yellen.
  17. 17. Release Date: December 14, 2010January 26, 2011For immediate releaseInformation received since the Federal Open Market Committee met in NovemberDecemberconfirms that the economic recovery is continuing, though at a rate that has been insufficient tobring down unemployment. Household spending is increasing at a moderate paceabout asignificant improvement in labor market conditions. Growth in household spending picked up latelast year, but remains constrained by high unemployment, modest income growth, lower housingwealth, and tight credit. Business spending on equipment and software is rising, though lessrapidly than earlier in the year, while investment in nonresidential structures continues to beis stillweak. Employers remain reluctant to add to payrolls. The housing sector continues to bedepressed. LongerAlthough commodity prices have risen, longer-term inflation expectations haveremained stable, butand measures of underlying inflation have continued to trendbeen trendingdownward.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. Currently, the unemployment rate is elevated, and measures of underlying inflationare somewhat low, relative to levels that the Committee judges to be consistent, over the longerrun, with its dual mandate. Although the Committee anticipates a gradual return to higher levels ofresource utilization in a context of price stability, progress toward its objectives has beendisappointingly slow.To promote a stronger pace of economic recovery and to help ensure that inflation, over time, isat levels consistent with its mandate, the Committee decided today to continue expanding itsholdings of securities as announced in November. TheIn particular, the Committee will maintainismaintaining its existing policy of reinvesting principal payments from its securities holdings. Inaddition, the Committee and intends to purchase $600 billion of longer-term Treasury securitiesby the end of the second quarter of 2011, a pace of about $75 billion per month.. The Committeewill regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to bestfoster maximum employment and price stability.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels for the federal funds rate for an extended period.The Committee will continue to monitor the economic outlook and financial developments and willemploy its policy tools as necessary to support the economic recovery and to help ensure thatinflation, over time, is at levels consistent with its mandate.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra PianaltoCharles L. Evans;Richard W. Fisher; Narayana Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Eric S.Rosengren; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.Voting against the policy was Thomas M. Hoenig. In light of the improving economy, Mr. Hoenigwas concerned that a continued high level of monetary accommodation would increase the risksof future economic and financial imbalances and, over time, would cause an increase in long-terminflation expectations that could destabilize the economy.
  18. 18. Release Date: November 3December 14, 2010For immediate releaseInformation received since the Federal Open Market Committee met in SeptemberNovemberconfirms that the pace ofeconomic recovery in output and employment continuesis continuing,though at a rate that has been insufficient to be slow.bring down unemployment. Householdspending is increasing graduallyat a moderate pace, but remains constrained by highunemployment, modest income growth, lower housing wealth, and tight credit. Business spendingon equipment and software is rising, though less rapidly than earlier in the year, while investmentin nonresidential structures continues to be weak. Employers remain reluctant to add to payrolls.Housing starts continueThe housing sector continues to be depressed. Longer-term inflationexpectations have remained stable, but measures of underlying inflation have trended lower inrecent quarterscontinued to trend downward.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. Currently, the unemployment rate is elevated, and measures of underlying inflationare somewhat low, relative to levels that the Committee judges to be consistent, over the longerrun, with its dual mandate. Although the Committee anticipates a gradual return to higher levels ofresource utilization in a context of price stability, progress toward its objectives has beendisappointingly slow.To promote a stronger pace of economic recovery and to help ensure that inflation, over time, isat levels consistent with its mandate, the Committee decided today to expandcontinue expandingits holdings of securities as announced in November. The Committee will maintain its existingpolicy of reinvesting principal payments from its securities holdings. In addition, the Committeeintends to purchase a further $600 billion of longer-term Treasury securities by the end of thesecond quarter of 2011, a pace of about $75 billion per month. The Committee will regularlyreview the pace of its securities purchases and the overall size of the asset-purchase program inlight of incoming information and will adjust the program as needed to best foster maximumemployment and price stability.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels for the federal funds rate for an extended period.The Committee will continue to monitor the economic outlook and financial developments and willemploy its policy tools as necessary to support the economic recovery and to help ensure thatinflation, over time, is at levels consistent with its mandate.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra Pianalto; Sarah BloomRaskin; Eric S. Rosengren; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.Voting against the policy was Thomas M. Hoenig. In light of the improving economy, Mr. Hoenigbelieved the risks of additional securities purchases outweighed the benefits. Mr. Hoenig alsowas concerned that thisa continued high level of monetary accommodation increasedwouldincrease the risks of future economic and financial imbalances and, over time, would cause anincrease in long-term inflation expectations that could destabilize the economy.
  19. 19. Release Date: September 21November 3, 2010For immediate releaseInformation received since the Federal Open Market Committee met in AugustindicatesSeptember confirms that the pace of recovery in output and employment has slowed inrecent monthscontinues to be slow. Household spending is increasing gradually, but remainsconstrained by high unemployment, modest income growth, lower housing wealth, and tightcredit. Business spending on equipment and software is rising, though less rapidly than earlier inthe year, while investment in nonresidential structures continues to be weak. Employers remainreluctant to add to payrolls. Housing starts are at acontinue to be depressed level. Bank lendinghas continued to contract. Longer-term inflation expectations have remained stable, but at areduced rate measures of underlying inflation have trended lower in recent months. Thequarters.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. Currently, the unemployment rate is elevated, and measures of underlying inflationare somewhat low, relative to levels that the Committee judges to be consistent, over the longerrun, with its dual mandate. Although the Committee anticipates a gradual return to higher levels ofresource utilization in a context of price stability, although the pace of economic recovery is likelyto be modest in the near termprogress toward its objectives has been disappointingly slow.Measures of underlying inflation are currently at levels somewhat below those the Committeejudges most consistent, over the longer run, with its mandate to promote maximum employmentand price stability. With substantial resource slack continuing to restrain cost pressures andlonger-term inflation expectations stable, inflation is likely to remain subdued for some time beforerising to levels the Committee considers consistent with its mandate.To promote a stronger pace of economic recovery and to help ensure that inflation, over time, isat levels consistent with its mandate, the Committee decided today to expand its holdings ofsecurities. The Committee will maintain its existing policy of reinvesting principal payments fromits securities holdings. In addition, the Committee intends to purchase a further $600 billion oflonger-term Treasury securities by the end of the second quarter of 2011, a pace of about $75billion per month. The Committee will regularly review the pace of its securities purchases and theoverall size of the asset-purchase program in light of incoming information and will adjust theprogram as needed to best foster maximum employment and price stability.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels for the federal funds rate for an extended period. The Committee also will maintain itsexisting policy of reinvesting principal payments from its securities holdings.The Committee will continue to monitor the economic outlook and financial developments and isprepared to provide additional accommodation if neededwill employ its policy tools as necessaryto support the economic recovery and to returnhelp ensure that inflation, over time, tois at levelsconsistent with its mandate.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra Pianalto; Sarah BloomRaskin; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh; and Janet L. Yellen.Voting against the policy was Thomas M. Hoenig, who judged that the economy continues torecover at a moderate pace. Accordingly, he believed that continuing to express the expectation
  20. 20. of exceptionally low levels of the federal funds rate for an extended period was no longerwarranted and will lead to future imbalances that undermine stable long-run growth. In addition,given economic and financial conditions, Mr. Hoenig did not believe that continuing to reinvestprincipal payments from its securities holdings was required to support the Committee’s policyobjectives.Voting against the policy was Thomas M. Hoenig. Mr. Hoenig believed the risks of additionalsecurities purchases outweighed the benefits. Mr. Hoenig also was concerned that this continuedhigh level of monetary accommodation increased the risks of future financial imbalances and,over time, would cause an increase in long-term inflation expectations that could destabilize theeconomy.
  21. 21. Release Date: August 10September 21, 2010For immediate releaseInformation received since the Federal Open Market Committee met in JuneAugust indicates thatthe pace of recovery in output and employment has slowed in recent months. Householdspending is increasing gradually, but remains constrained by high unemployment, modest incomegrowth, lower housing wealth, and tight credit. Business spending on equipment and software isrising; however,, though less rapidly than earlier in the year, while investment in nonresidentialstructures continues to be weak and employers. Employers remain reluctant to add to payrolls.Housing starts remainare at a depressed level. Bank lending has continued to contract.Nonetheless, the, but at a reduced rate in recent months. The Committee anticipates a gradualreturn to higher levels of resource utilization in a context of price stability, although the pace ofeconomic recovery is likely to be more modest in the near term than had been anticipated.Measures of underlying inflation have trended lower in recent quarters andare currently at levelssomewhat below those the Committee judges most consistent, over the longer run, with itsmandate to promote maximum employment and price stability. With substantial resource slackcontinuing to restrain cost pressures and longer-term inflation expectations stable, inflation islikely to beremain subdued for some time before rising to levels the Committee considersconsistent with its mandate.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels offor the federal funds rate for an extended period. The Committee also will maintain itsexisting policy of reinvesting principal payments from its securities holdings.To help support the economic recovery in a context of price stability, the Committee will keepconstant the Federal Reserves holdings of securities at their current level by reinvesting principalpayments from agency debt and agency mortgage-backed securities in longer-term Treasury 1securities. The Committee will continue to roll over the Federal Reserves holdings of Treasurysecurities as they mature.The Committee will continue to monitor the economic outlook and financial developments and willemployis prepared to provide additional accommodation if needed to support the economicrecovery and to return inflation, over time, to levels consistent with its policy tools as necessary topromote economic recovery and price stabilitymandate.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; EricS. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh.Voting against the policy was Thomas M. Hoenig, who judgesjudged that the economy isrecovering modestly, as projectedcontinues to recover at a moderate pace. Accordingly, hebelieved that continuing to express the expectation of exceptionally low levels of the federal fundsrate for an extended period was no longer warranted and limits the Committees abilitywill lead toadjust policy when needed.future imbalances that undermine stable long-run growth. In addition,given economic and financial conditions, Mr. Hoenig did not believe that keeping constant thesize of the Federal Reserves holdings of longer-termcontinuing to reinvest principal paymentsfrom its securities at their current level holdings was required to support a return to theCommitteesCommittee’s policy objectives.
  22. 22. Release Date: June 23August 10, 2010For immediate releaseInformation received since the Federal Open Market Committee met in April suggestsJuneindicates that the economicpace of recovery is proceedingin output and that the labor market isimproving gradually.employment has slowed in recent months. Household spending is increasinggradually, but remains constrained by high unemployment, modest income growth, lower housingwealth, and tight credit. Business spending on equipment and software has risen significantlyisrising; however, investment in nonresidential structures continues to be weak and employersremain reluctant to add to payrolls. Housing starts remain at a depressed level. Financialconditions have become less supportive of economic growth on balance, largely reflectingdevelopments abroad. Bank lending has continued to contract in recent months. Nonetheless, theCommittee anticipates a gradual return to higher levels of resource utilization in a context of pricestability, although the pace of economic recovery is likely to be moderate for a timemore modestin the near term than had been anticipated.PricesMeasures of energy and other commodities have declined somewhat in recent months, andunderlying inflation hashave trended lower. With in recent quarters and, with substantial resourceslack continuing to restrain cost pressures and longer-term inflation expectations stable, inflationis likely to be subdued for some time.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels of the federal funds rate for an extended period.To help support the economic recovery in a context of price stability, the Committee will keepconstant the Federal Reserves holdings of securities at their current level by reinvesting principalpayments from agency debt and agency mortgage-backed securities in longer-term Treasury 1securities. The Committee will continue to roll over the Federal Reserves holdings of Treasurysecurities as they mature.The Committee will continue to monitor the economic outlook and financial developments and willemploy its policy tools as necessary to promote economic recovery and price stability.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; EricS. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh.Voting against the policy action was Thomas M. Hoenig, who judges that the economy isrecovering modestly, as projected. Accordingly, he believed that continuing to express theexpectation of exceptionally low levels of the federal funds rate for an extended period was nolonger warranted because it could lead to a build-up of future imbalances and increase risks tolonger-run macroeconomic and financial stability, while limiting the Committee’s flexibility to beginraising rates modestlyand limits the Committees ability to adjust policy when needed. In addition,given economic and financial conditions, Mr. Hoenig did not believe that keeping constant thesize of the Federal Reserves holdings of longer-term securities at their current level was requiredto support a return to the Committees policy objectives.
  23. 23. Release Date: April 28June 23, 2010For immediate releaseInformation received since the Federal Open Market Committee met in MarchApril suggests thatthe economic activity has continued to strengthenrecovery is proceeding and that the labormarket is beginning to improve. Growth in householdimproving gradually. Household spendinghas picked up recentlyis increasing but remains constrained by high unemployment, modestincome growth, lower housing wealth, and tight credit. Business spending on equipment andsoftware has risen significantly; however, investment in nonresidential structures isdecliningcontinues to be weak and employers remain reluctant to add to payrolls. Housing startshave edged up but remain at a depressed level. While bank lending continues to contract,financial marketFinancial conditions remainhave become less supportive of economic growth.Although the pace of economic recovery is likely to be moderate for a time on balance, largelyreflecting developments abroad. Bank lending has continued to contract in recent months.Nonetheless, the Committee anticipates a gradual return to higher levels of resource utilization ina context of price stability, although the pace of economic recovery is likely to be moderate for atime.Prices of energy and other commodities have declined somewhat in recent months, andunderlying inflation has trended lower. With substantial resource slack continuing to restrain costpressures and longer-term inflation expectations stable, inflation is likely to be subdued for sometime.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels of the federal funds rate for an extended period.The Committee will continue to monitor the economic outlook and financial developments and willemploy its policy tools as necessary to promote economic recovery and price stability.In light of improved functioning of financial markets, the Federal Reserve has closed all but one ofthe special liquidity facilities that it created to support markets during the crisis. The onlyremaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to closeon June 30 for loans backed by new-issue commercial mortgage-backed securities; it closed onMarch 31 for loans backed by all other types of collateral.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; EricS. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the policy action wasThomas M. Hoenig, who believed that continuing to express the expectation of exceptionally lowlevels of the federal funds rate for an extended period was no longer warranted because it couldlead to a build-up of future imbalances and increase risks to longer -run macroeconomic andfinancial stability, while limiting the Committee’s flexibility to begin raising rates modestly.
  24. 24. Release Date: March 16April 28, 2010For immediate releaseInformation received since the Federal Open Market Committee met in JanuaryMarch suggeststhat economic activity has continued to strengthen and that the labor market is stabilizing.Householdbeginning to improve. Growth in household spending is expanding at a moderateratehas picked up recently but remains constrained by high unemployment, modest incomegrowth, lower housing wealth, and tight credit. Business spending on equipment and software hasrisen significantly. However; however, investment in nonresidential structures is declining,housing starts have been flat at a depressed level, and employers remain reluctant to add topayrolls. Housing starts have edged up but remain at a depressed level. While bank lendingcontinues to contract, financial market conditions remain supportive of economic growth.Although the pace of economic recovery is likely to be moderate for a time, the Committeeanticipates a gradual return to higher levels of resource utilization in a context of price stability.With substantial resource slack continuing to restrain cost pressures and longer-term inflationexpectations stable, inflation is likely to be subdued for some time.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels of the federal funds rate for an extended period. To provide support to mortgage lendingand housing markets and to improve overall conditions in private credit markets, the FederalReserve has been purchasing $1.25 trillion of agency mortgage-backed securities and about$175 billion of agency debt; those purchases are nearing completion, and the remainingtransactions will be executed by the end of this month. The Committee will continue to monitorthe economic outlook and financial developments and will employ its policy tools as necessary topromote economic recovery and price stability.In light of improved functioning of financial markets, the Federal Reserve has been closingclosedall but one of the special liquidity facilities that it created to support markets during the crisis. Theonly remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled toclose on June 30 for loans backed by new-issue commercial mortgage-backed securities and; itclosed on March 31 for loans backed by all other types of collateral.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; EricS. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the policy action wasThomas M. Hoenig, who believed that continuing to express the expectation of exceptionally lowlevels of the federal funds rate for an extended period was no longer warranted because it couldlead to the buildupa build-up of financialfuture imbalances and increase risks to longer- runmacroeconomic and financial stability, while limiting the Committee’s flexibility to begin raisingrates modestly.
  25. 25. Release Date: January 27March 16, 2010For immediate releaseInformation received since the Federal Open Market Committee met in DecemberJanuarysuggests that economic activity has continued to strengthen and that the deterioration in the labormarket is abatingstabilizing. Household spending is expanding at a moderate rate but remainsconstrained by a weak labor markethigh unemployment, modest income growth, lower housingwealth, and tight credit. Business spending on equipment and software appears to be picking up,buthas risen significantly. However, investment in nonresidential structures is stillcontractingdeclining, housing starts have been flat at a depressed level, and employers remainreluctant to add to payrolls. Firms have brought inventory stocks into better alignment with sales.While bank lending continues to contract, financial market conditions remain supportive ofeconomic growth. Although the pace of economic recovery is likely to be moderate for a time, theCommittee anticipates a gradual return to higher levels of resource utilization in a context of pricestability.With substantial resource slack continuing to restrain cost pressures and with longer-terminflation expectations stable, inflation is likely to be subdued for some time.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels of the federal funds rate for an extended period. To provide support to mortgage lendingand housing markets and to improve overall conditions in private credit markets, the FederalReserve is in the process ofhas been purchasing $1.25 trillion of agency mortgage-backedsecurities and about $175 billion of agency debt. In order to promote a smooth transition inmarkets, the Committee is gradually slowing the pace of these; those purchases are nearingcompletion, and it anticipates that thesethe remaining transactions will be executed by the end ofthe first quarter.this month. The Committee will continue to evaluate its purchases of securities inlight of the evolving monitor the economic outlook and conditions in financialmarketsdevelopments and will employ its policy tools as necessary to promote economicrecovery and price stability.In light of improved functioning of financial markets, the Federal Reserve will behas been closingthe Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, theCommercial Paper Funding Facility, the Primary Dealer Credit Facility, and the Term SecuritiesLending Facility on February 1, as previously announced. In addition, the temporaryspecialliquidity swap arrangements between the Federal Reserve and other central banks will expire onFebruary 1. The Federal Reserve is in the process of winding down its Term Auction Facility: $50billion in 28-day credit will be offered on February 8 and $25 billion in 28-day credit will be offeredat the final auction on March 8. The anticipated expiration dates for the facilities that it created tosupport markets during the crisis. The only remaining such program, the Term Asset-BackedSecurities Loan Facility remain set at, is scheduled to close on June 30 for loans backed by new-issue commercial mortgage-backed securities and on March 31 for loans backed by all othertypes of collateral. The Federal Reserve is prepared to modify these plans if necessary to supportfinancial stability and economic growth.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; EricS. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the policy action wasThomas M. Hoenig, who believed that economic and financial conditions had changed sufficientlythatcontinuing to express the expectation of exceptionally low levels of the federal funds rate for
  26. 26. an extended period was no longer warranted because it could lead to the buildup of financialimbalances and increase risks to longer-run macroeconomic and financial stability.
  27. 27. Release Date: December 16, 2009January 27, 2010For immediate releaseInformation received since the Federal Open Market Committee met in NovemberDecembersuggests that economic activity has continued to pick upstrengthen and that the deterioration inthe labor market is abating. The housing sector has shown some signs of improvement overrecent months. Household spending appears to beis expanding at a moderate rate, though it butremains constrained by a weak labor market, modest income growth, lower housing wealth, andtight credit. Businesses are still cutting backBusiness spending on fixedequipment and softwareappears to be picking up, but investment, though at a slower pace, and in structures is stillcontracting and employers remain reluctant to add to payrolls; they continue to make progress inbringing. Firms have brought inventory stocks into better alignment with sales. Financial Whilebank lending continues to contract, financial market conditions have become more remainsupportive of economic growth. Although the pace of economic activityrecovery is likely to remainweakbe moderate for a time, the Committee anticipates that policy actions to stabilize financialmarkets and institutions, fiscal and monetary stimulus, and market forces will contribute to astrengthening of economic growth and a gradual return to higher levels of resource utilization in acontext of price stability.With substantial resource slack likelycontinuing to continue to dampenrestrain cost pressures andwith longer-term inflation expectations stable, the Committee expects that inflation will remainislikely to be subdued for some time.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent andcontinues to anticipate that economic conditions, including low rates of resource utilization,subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally lowlevels of the federal funds rate for an extended period. To provide support to mortgage lendingand housing markets and to improve overall conditions in private credit markets, the FederalReserve is in the process of purchasing $1.25 trillion of agency mortgage-backed securities andabout $175 billion of agency debt. In order to promote a smooth transition in markets, theCommittee is gradually slowing the pace of these purchases, and it anticipates that thesetransactions will be executed by the end of the first quarter of 2010. The Committee will continueto evaluate the timing and overall amounts of its purchases of securities in light of the evolvingeconomic outlook and conditions in financial markets.In light of ongoing improvements in theimproved functioning of financial markets, the Committeeand the Board of Governors anticipate that most of the Federal Reserve’s special liquidityfacilitiesReserve will expire on February 1, 2010, consistent with the Federal Reserve’sannouncement of June 25, 2009. These facilities includebe closing the Asset-Backed CommercialPaper Money Market Mutual Fund Liquidity Facility, the Commercial Paper Funding Facility, thePrimary Dealer Credit Facility, and the Term Securities Lending Facility. The Federal Reserve willalso be working with its central bank counterparties to close its on February 1, as previouslyannounced. In addition, the temporary liquidity swap arrangements bybetween the FederalReserve and other central banks will expire on February 1. The Federal Reserve expects thatamounts provided under the is in the process of winding down its Term Auction Facility: $50billion in 28-day credit will continue tobe offered on February 8 and $25 billion in 28-day credit willbe scaled back in early 2010offered at the final auction on March 8. The anticipated expirationdates for the Term Asset-Backed Securities Loan Facility remain set at June 30, 2010, for loansbacked by new-issue commercial mortgage-backed securities and March 31, 2010, for loansbacked by all other types of collateral. The Federal Reserve is prepared to modify these plans ifnecessary to support financial stability and economic growth.
  28. 28. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn;Jeffrey M. Lacker; Dennis P. LockhartSandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; andKevin M. Warsh; and Janet L. Yellen. Voting against the policy action was Thomas M. Hoenig,who believed that economic and financial conditions had changed sufficiently that the expectationof exceptionally low levels of the federal funds rate for an extended period was no longerwarranted.
  29. 29. Release Date: November 4December 16, 2009For immediate releaseInformation received since the Federal Open Market Committee met in SeptemberNovembersuggests that economic activity has continued to pick up. Conditions in financial markets wereroughly unchanged, on balance, over and that the intermeeting period. Activitydeterioration in thelabor market is abating. The housing sector has increasedshown some signs of improvementover recent months. Household spending appears to be expanding butat a moderate rate, thoughit remains constrained by ongoing job losses, sluggisha weak labor market, modest incomegrowth, lower housing wealth, and tight credit. Businesses are still cutting back on fixedinvestment and staffing, though at a slower pace, and remain reluctant to add to payrolls; theycontinue to make progress in bringing inventory stocks into better alignment with sales. Financialmarket conditions have become more supportive of economic growth. Although economic activityis likely to remain weak for a time, the Committee anticipates that policy actions to stabilizefinancial markets and institutions, fiscal and monetary stimulus, and market forces willsupportcontribute to a strengthening of economic growth and a gradual return to higher levels ofresource utilization in a context of price stability.With substantial resource slack likely to continue to dampen cost pressures and with longer-terminflation expectations stable, the Committee expects that inflation will remain subdued for sometime.In these circumstances, the Federal Reserve will continue to employ a wide range of tools topromote economic recovery and to preserve price stability. The Committee will maintain thetarget range for the federal funds rate at 0 to 1/4 percent and continues to anticipate thateconomic conditions, including low rates of resource utilization, subdued inflation trends, andstable inflation expectations, are likely to warrant exceptionally low levels of the federal funds ratefor an extended period. To provide support to mortgage lending and housing markets and toimprove overall conditions in private credit markets, the Federal Reserve will purchase a total ofisin the process of purchasing $1.25 trillion of agency mortgage-backed securities and about $175billion of agency debt. The amount of agency debt purchases, while somewhat less than thepreviously announced maximum of $200 billion, is consistent with the recent path of purchasesand reflects the limited availability of agency debt. In order to promote a smooth transition inmarkets, the Committee willis gradually slowslowing the pace of itsthese purchases of bothagency debt, and agency mortgage-backed securities andit anticipates that these transactionswill be executed by the end of the first quarter of 2010. The Committee will continue to evaluatethe timing and overall amounts of its purchases of securities in light of the evolving economicoutlook and conditions in financial markets. The Federal Reserve is monitoring the size andcomposition of its balance sheet and will make adjustments to its credit and liquidity programs aswarranted.In light of ongoing improvements in the functioning of financial markets, the Committee and theBoard of Governors anticipate that most of the Federal Reserve’s special liquidity facilities willexpire on February 1, 2010, consistent with the Federal Reserve’s announcement of June 25,2009. These facilities include the Asset-Backed Commercial Paper Money Market Mutual FundLiquidity Facility, the Commercial Paper Funding Facility, the Primary Dealer Credit Facility, andthe Term Securities Lending Facility. The Federal Reserve will also be working with its centralbank counterparties to close its temporary liquidity swap arrangements by February 1. TheFederal Reserve expects that amounts provided under the Term Auction Facility will continue tobe scaled back in early 2010. The anticipated expiration dates for the Term Asset-BackedSecurities Loan Facility remain set at June 30, 2010, for loans backed by new-issue commercialmortgage-backed securities and March 31, 2010, for loans backed by all other types of collateral.
  30. 30. The Federal Reserve is prepared to modify these plans if necessary to support financial stabilityand economic growth.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker;Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.
  31. 31. Release Date: September 23November 4, 2009For immediate releaseInformation received since the Federal Open Market Committee met in AugustSeptembersuggests that economic activity has pickedcontinued to pick up following its severe downturn. .Conditions in financial markets have improved further, and activitywere roughly unchanged, onbalance, over the intermeeting period. Activity in the housing sector has increased. over recentmonths. Household spending seemsappears to be stabilizing,expanding but remains constrainedby ongoing job losses, sluggish income growth, lower housing wealth, and tightcredit. Businesses are still cutting back on fixed investment and staffing, though at a slowerpace; they continue to make progress in bringing inventory stocks into better alignment withsales. Although economic activity is likely to remain weak for a time, the Committee anticipatesthat policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, andmarket forces will support a strengthening of economic growth and a gradual return to higherlevels of resource utilization in a context of price stability.With substantial resource slack likely to continue to dampen cost pressures and with longer-terminflation expectations stable, the Committee expects that inflation will remain subdued for sometime.In these circumstances, the Federal Reserve will continue to employ a wide range of tools topromote economic recovery and to preserve price stability. The Committee will maintain thetarget range for the federal funds rate at 0 to 1/4 percent and continues to anticipate thateconomic conditions, including low rates of resource utilization, subdued inflation trends, andstable inflation expectations, are likely to warrant exceptionally low levels of the federal funds ratefor an extended period. To provide support to mortgage lending and housing markets and toimprove overall conditions in private credit markets, the Federal Reserve will purchase a total of$1.25 trillion of agency mortgage-backed securities and up to $200about $175 billion of agencydebt. The Committee will gradually slow the pace of these amount of agency debt purchases in,while somewhat less than the previously announced maximum of $200 billion, is consistent withthe recent path of purchases and reflects the limited availability of agency debt. In order topromote a smooth transition in markets , the Committee will gradually slow the pace of itspurchases of both agency debt and agency mortgage-backed securities and anticipates thattheythese transactions will be executed by the end of the first quarter of 2010. As previouslyannounced, the Federal Reserve’s purchases of $300 billion of Treasury securities will becompleted by the end of October 2009. The Committee will continue to evaluate the timing andoverall amounts of its purchases of securities in light of the evolving economic outlook andconditions in financial markets. The Federal Reserve is monitoring the size and composition of itsbalance sheet and will make adjustments to its credit and liquidity programs as warranted.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker;Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.
  32. 32. Release Date: August 12September 23, 2009For immediate releaseInformation received since the Federal Open Market Committee met in JuneAugust suggests thateconomic activity is leveling out.has picked up following its severe downturn. Conditions infinancial markets have improved further, and activity in recent weeks.the housing sector hasincreased. Household spending has continuedseems to show signs ofbe stabilizing, but remainsconstrained by ongoing job losses, sluggish income growth, lower housing wealth, and tightcredit. Businesses are still cutting back on fixed investment and staffing but are making, thoughat a slower pace; they continue to make progress in bringing inventory stocks into betteralignment with sales. Although economic activity is likely to remain weak for a time, theCommittee continues to anticipateanticipates that policy actions to stabilize financial markets andinstitutions, fiscal and monetary stimulus, and market forces will contribute to a gradualresumptionsupport a strengthening of sustainable economic growth and a gradual return to higherlevels of resource utilization in a context of price stability.The prices of energy and other commodities have risen of late. However,With substantialresource slack is likely to continue to dampen cost pressures, and and with longer-term inflationexpectations stable, the Committee expects that inflation will remain subdued for some time.In these circumstances, the Federal Reserve will continue to employ all availablea wide range oftools to promote economic recovery and to preserve price stability. The Committee will maintainthe target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate thateconomic conditions are likely to warrant exceptionally low levels of the federal funds rate for anextended period. As previously announced, to To provide support to mortgage lending andhousing markets and to improve overall conditions in private credit markets, the Federal Reservewill purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200billion of agency debt. The Committee will gradually slow the pace of these purchases in order topromote a smooth transition in markets and anticipates that they will be executed by the end ofthe year. In additionfirst quarter of 2010. As previously announced, the Federal Reserve is in theprocess of buying Reserve’s purchases of $300 billion of Treasury securities. To promote asmooth transition in markets as these purchases of Treasury securities are will be completed, theCommittee has decided to gradually slow the pace of these transactions and anticipates that thefull amount will be purchased by the end of October. 2009. The Committee will continue toevaluate the timing and overall amounts of its purchases of securities in light of the evolvingeconomic outlook and conditions in financial markets. The Federal Reserve is monitoring thesize and composition of its balance sheet and will make adjustments to its credit and liquidityprograms as warranted.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker;Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.
  33. 33. Release Date: June 24August 12, 2009For immediate releaseInformation received since the Federal Open Market Committee met in AprilJune suggests thatthe pace of economic contractionactivity is slowingleveling out. Conditions in financial marketshave generally improved further in recent monthsweeks. Household spending has shown furthercontinued to show signs of stabilizing but remains constrained by ongoing job losses, sluggishincome growth, lower housing wealth, and tight credit. Businesses are still cutting back on fixedinvestment and staffing but appear to beare making progress in bringing inventory stocks intobetter alignment with sales. Although economic activity is likely to remain weak for a time, theCommittee continues to anticipate that policy actions to stabilize financial markets andinstitutions, fiscal and monetary stimulus, and market forces will contribute to a gradualresumption of sustainable economic growth in a context of price stability.The prices of energy and other commodities have risen of late. However, substantial resourceslack is likely to dampen cost pressures, and the Committee expects that inflation will remainsubdued for some time.In these circumstances, the Federal Reserve will employ all available tools to promote economicrecovery and to preserve price stability. The Committee will maintain the target range for thefederal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions arelikely to warrant exceptionally low levels of the federal funds rate for an extended period. Aspreviously announced, to provide support to mortgage lending and housing markets and toimprove overall conditions in private credit markets, the Federal Reserve will purchase a total ofup to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt bythe end of the year. In addition, the Federal Reserve will buy up to is in the process of buying$300 billion of Treasury securities. To promote a smooth transition in markets as these purchasesof Treasury securities are completed, the Committee has decided to gradually slow the pace ofthese transactions and anticipates that the full amount will be purchased by autumnthe end ofOctober. The Committee will continue to evaluate the timing and overall amounts of its purchasesof securities in light of the evolving economic outlook and conditions in financial markets. TheFederal Reserve is monitoring the size and composition of its balance sheet and will makeadjustments to its credit and liquidity programs as warranted.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker;Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.
  34. 34. Release Date: April 29June 24, 2009For immediate releaseInformation received since the Federal Open Market Committee met in March indicatesAprilsuggests that the economy has continued to contract, though the pace of economic contractionappears to be somewhat slower.is slowing. Conditions in financial markets have generallyimproved in recent months. Household spending has shown further signs of stabilizing butremains constrained by ongoing job losses, lower housing wealth, and tight credit. Weak salesprospects and difficulties in obtaining credit have led businesses to cutBusinesses are cuttingback on inventories, fixed investment, and staffing. but appear to be making progress in bringinginventory stocks into better alignment with sales. Although the economic outlook has improvedmodestly since the March meeting, partly reflecting some easing of financial market conditions,economic activity is likely to remain weak for a time. Nonetheless, the Committee continues toanticipate that policy actions to stabilize financial markets and institutions, fiscal and monetarystimulus, and market forces will contribute to a gradual resumption of sustainable economicgrowth in a context of price stability.In lightThe prices of increasing economicenergy and other commodities have risen of late.However, substantial resource slack here and abroad,is likely to dampen cost pressures, and theCommittee expects that inflation will remain subdued. Moreover, the Committee sees for somerisk that inflation could persist for a time below rates that best foster economic growth and pricestability in the longer term.In these circumstances, the Federal Reserve will employ all available tools to promote economicrecovery and to preserve price stability. The Committee will maintain the target range for thefederal funds rate at 0 to 1/4 percent and anticipatescontinues to anticipate that economicconditions are likely to warrant exceptionally low levels of the federal funds rate for an extendedperiod. As previously announced, to provide support to mortgage lending and housing marketsand to improve overall conditions in private credit markets, the Federal Reserve will purchase atotal of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agencydebt by the end of the year. In addition, the Federal Reserve will buy up to $300 billion ofTreasury securities by autumn. The Committee will continue to evaluate the timing and overallamounts of its purchases of securities in light of the evolving economic outlook and conditions infinancial markets. The Federal Reserve is facilitating the extension of credit to households andbusinesses and supporting the functioning of financial markets through a range of liquidityprograms. The Committee will continue to carefully monitormonitoring the size and composition ofthe Federal Reservesits balance sheet in light of financial and economic developmentsand willmake adjustments to its credit and liquidity programs as warranted.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker;Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.
  35. 35. Release Date: March 18April 29, 2009For immediate releaseInformation received since the Federal Open Market Committee met in JanuaryMarch indicatesthat the economy continueshas continued to contract. Job, though the pace of contractionappears to be somewhat slower. Household spending has shown signs of stabilizing but remainsconstrained by ongoing job losses, declining equity andlower housing wealth, and tight creditconditions have weighed on consumer sentiment and spending. Weaker. Weak sales prospectsand difficulties in obtaining credit have led businesses to cut back on inventories and, fixedinvestment. U.S. exports have slumped as a number of major trading partners have also falleninto recession. , and staffing. Although the near-term economic outlook has improved modestlysince the March meeting, partly reflecting some easing of financial market conditions, economicactivity is likely to remain weak for a time. Nonetheless, the Committee anticipatescontinues toanticipate that policy actions to stabilize financial markets and institutions, together with fiscal andmonetary stimulus, and market forces will contribute to a gradual resumption of sustainableeconomic growth in a context of price stability.In light of increasing economic slack here and abroad, the Committee expects that inflation willremain subdued. Moreover, the Committee sees some risk that inflation could persist for a timebelow rates that best foster economic growth and price stability in the longer term.In these circumstances, the Federal Reserve will employ all available tools to promote economicrecovery and to preserve price stability. The Committee will maintain the target range for thefederal funds rate at 0 to 1/4 percent and anticipates that economic conditions are likely towarrant exceptionally low levels of the federal funds rate for an extended period. To Aspreviously announced, to provide greater support to mortgage lending and housing markets, theCommittee decided today to increase the size of the Federal Reserve’s balance sheet further bypurchasing up to an additional $750 billion of agency mortgage-backed securities, bringing itstotal purchases of these securities to up to $1.25 trillion this year, and to increase its purchases ofagency debt this year by up to $100 billion to a total of up to $200 billion. Moreover, to helpimprove overall conditions in private credit markets, the Committee decided toFederal Reservewill purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200billion of agency debt by the end of the year. In addition, the Federal Reserve will buy up to $300billion of longer-term Treasury securities overby autumn. The Committee will continue to evaluatethe next six months. The Federal Reserve has launched timing and overall amounts of itspurchases of securities in light of the Term Asset-Backed Securities Loan Facility tofacilitateevolving economic outlook and conditions in financial markets. The Federal Reserve isfacilitating the extension of credit to households and small businesses and anticipatesthatsupporting the functioning of financial markets through a range of eligible collateral for thisfacility is likely to be expanded to include other financial assets. liquidity programs. TheCommittee will continue to carefully monitor the size and composition of the Federal Reservesbalance sheet in light of evolving financial and economic developments.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker;Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.

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