–FOMC’s April 28 Statement Follows for Comparison
WASHINGTON (MNI) – The following is the text of the statement
released Tuesday by the Federal Open Market Committee after its one-day
monetary policy meeting. The statement from the two-day January 26-27
meeting follows for comparison:
Information received since the Federal Open Market Committee met in
April suggests that the economic recovery is proceeding and that the
labor market is improving gradually. Household spending is increasing
but remains constrained by high unemployment, modest income growth,
lower housing wealth, and tight credit. Business spending on equipment
and software has risen significantly; however, investment in
nonresidential structures continues to be weak and employers remain
reluctant to add to payrolls. Housing starts remain at a depressed
level. Financial conditions have become less supportive of economic
growth on balance, largely reflecting developments abroad. Bank lending
has continued to contract in recent months. Nonetheless, the Committee
anticipates a gradual return to higher levels of resource utilization in
a context of price stability, although the pace of economic recovery is
likely to be moderate for a time.
Prices of energy and other commodities have declined somewhat in
recent months, and underlying inflation has trended lower. With
substantial resource slack continuing to restrain cost pressures and
longer-term inflation 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 and continues to anticipate that economic
conditions, including low rates of resource utilization, subdued
inflation trends, and stable inflation expectations, are likely to
warrant exceptionally low levels of the federal funds rate for an
extended period.
The Committee will continue to monitor the economic outlook and
financial developments and will employ 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; Eric S. Rosengren; Daniel K.
Tarullo; and Kevin M. Warsh. Voting against the policy action was Thomas
M. Hoenig, who believed that continuing to express the expectation of
exceptionally low levels of the federal funds rate for an extended
period was no longer warranted because it could lead to a build-up of
future imbalances and increase risks to longer-run macroeconomic and
financial stability, while limiting the Committees flexibility to begin
raising rates modestly.
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The following is the FOMC statement released April 28, 2010:
Information received since the Federal Open Market Committee met in
March suggests that economic activity has continued to strengthen and
that the labor market is beginning to improve. Growth in household
spending has picked up recently but remains constrained by high
unemployment, modest income growth, lower housing wealth, and tight
credit. Business spending on equipment and software has risen
significantly; however, investment in nonresidential structures is
declining and employers remain reluctant to add to payrolls. Housing
starts have edged up but remain at a depressed level. While bank lending
continues 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 Committee anticipates 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 inflation 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 and continues to anticipate that economic
conditions, including low rates of resource utilization, subdued
inflation trends, and stable inflation expectations, are likely to
warrant exceptionally low levels of the federal funds rate for an
extended period. The Committee will continue to monitor the economic
outlook and financial developments and will employ 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 of the special liquidity facilities that
it created to support markets during the crisis. The only remaining such
program, the Term Asset-Backed Securities Loan Facility, is scheduled to
close on June 30 for loans backed by new-issue commercial
mortgage-backed securities; it closed 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; Eric S. Rosengren; Daniel K.
Tarullo; and Kevin M. Warsh. Voting against the policy action was Thomas
M. Hoenig, who believed that continuing to express the expectation of
exceptionally low levels of the federal funds rate for an extended
period was no longer warranted because it could lead to a build-up of
future imbalances and increase risks to longer run macroeconomic and
financial stability, while limiting the Committees flexibility to begin
raising rates modestly.
** Market News International Washington Bureau: 202-371-2121 **
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