–Dec 13 Statement Follows for Comparison
WASHINGTON (MNI) – The following is the text of the Federal Open
Market Committee’s monetary policy statement released Wednesday. The
statement released after the Dec. 13 meeting follows for comparison:
Information received since the Federal Open Market Committee met in
December suggests that the economy has been expanding moderately,
notwithstanding some slowing in global growth. While indicators point to
some further improvement in overall labor market conditions, the
unemployment rate remains elevated. Household spending has continued to
advance, but growth in business fixed investment has slowed, and the
housing sector remains depressed. Inflation has been subdued in recent
months, and longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to
foster maximum employment and price stability. The Committee expects
economic growth over coming quarters to be modest and consequently
anticipates that the unemployment rate will decline only gradually
toward levels that the Committee judges to be consistent with its dual
mandate. Strains in global financial markets continue to pose
significant downside risks to the economic outlook. The Committee also
anticipates that over coming quarters, inflation will run at levels at
or below those consistent with the Committee’s dual mandate.
To support a stronger economic recovery and to help ensure that
inflation, over time, is at levels consistent with the dual mandate, the
Committee expects to maintain a highly accommodative stance for monetary
policy. In particular, the Committee decided today to keep the target
range for the federal funds rate at 0 to 1/4 percent and currently
anticipates that economic conditions–including low rates of resource
utilization and a subdued outlook for inflation over the medium run–are
likely to warrant exceptionally low levels for the federal funds rate at
least through late 2014.
The Committee also decided to continue its program to extend the
average maturity of its holdings of securities as announced in
September. The Committee is maintaining its existing policies 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 Treasury securities at auction. The
Committee will regularly review the size and composition of its
securities holdings and is prepared to adjust those holdings as
appropriate to promote a stronger economic 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 Bloom Raskin; Daniel K. Tarullo; John
C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey
M. Lacker, who preferred to omit the description of the time period over
which economic conditions are likely to warrant exceptionally low levels
of the federal funds rate.
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The following is the FOMC statement released after the meeting
held Dec. 13, 2011:
Information received since the Federal Open Market Committee met in
November suggests that the economy has been expanding moderately,
notwithstanding some apparent slowing in global growth. While indicators
point to some improvement in overall labor market conditions, the
unemployment rate remains elevated. Household spending has continued to
advance, but business fixed investment appears to be increasing less
rapidly and the housing sector remains depressed. Inflation has
moderated since earlier in the year, and longer-term inflation
expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to
foster maximum employment and price stability. The Committee continues
to expect a moderate pace of economic growth over coming quarters and
consequently anticipates that the unemployment rate will decline only
gradually toward levels that the Committee judges to be consistent with
its dual mandate. Strains in global financial markets continue to pose
significant downside risks to the economic outlook. The Committee also
anticipates that inflation will settle, over coming quarters, at levels
at or below those consistent with the Committee’s dual mandate. However,
the Committee will continue to pay 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 levels consistent with the dual mandate, the
Committee decided today to continue its program to extend the average
maturity of its holdings of securities as announced in September. The
Committee is maintaining its existing policies 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 Treasury securities at auction. The Committee will regularly
review the size and composition 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 percent and currently anticipates that economic
conditions–including low rates of resource utilization and a subdued
outlook for inflation over the medium run–are likely to warrant
exceptionally low levels for the federal funds rate at least through
mid-2013.
The Committee will continue to assess the economic outlook in light
of incoming information and is prepared to employ its tools to promote a
stronger economic recovery in a context of price stability.
Voting for 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
action was Charles L. Evans, who supported additional policy
accommodation at this time.
** Market News International Washington Bureau: 202-371-2121 **
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