|
PureBytes Links
Trading Reference Links
|
|
Sent: Tuesday, May 03, 2005 4:07 PM
Subject: Correction: FOMC Statement For immediate release (Note:
Corrects previous release to add sentence in second paragraph, which was dropped
inadvertently.)
For immediate release
(Note: Corrects previous release to add sentence in second paragraph,
which was dropped inadvertently.)
The Federal Open Market Committee decided today to raise its target for the
federal funds rate by 25 basis points to 3 percent.
The Committee believes that, even after this action, the stance of monetary
policy remains accommodative and, coupled with robust underlying growth in
productivity, is providing ongoing support to economic activity. Recent data
suggest that the solid pace of spending growth has slowed somewhat, partly in
response to the earlier increases in energy prices. Labor market conditions,
however, apparently continue to improve gradually. Pressures on inflation have
picked up in recent months and pricing power is more evident.
Longer-term inflation expectations remain well
contained.
Release Date: May 3, 2005
For immediate release
The Federal Open Market Committee decided today to raise its target for the
federal funds rate by 25 basis points to 3 percent.
The Committee believes that, even after this action, the stance of monetary
policy remains accommodative and, coupled with robust underlying growth in
productivity, is providing ongoing support to economic activity. Recent data
suggest that the solid pace of spending growth has slowed somewhat, partly in
response to the earlier increases in energy prices. Labor market conditions,
however, apparently continue to improve gradually. Pressures on inflation have
picked up in recent months and pricing power is more evident.
The Committee perceives that, with appropriate monetary policy action, the
upside and downside risks to the attainment of both sustainable growth and
price stability should be kept roughly equal. With underlying inflation
expected to be contained, the Committee believes that policy accommodation can
be removed at a pace that is likely to be measured. Nonetheless, the Committee
will respond to changes in economic prospects as needed to fulfill its
obligation to maintain price stability.
Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman;
Timothy F. Geithner, Vice Chairman; Susan S. Bies; Roger W. Ferguson, Jr.;
Richard W. Fisher; Edward M. Gramlich; Donald L. Kohn; Michael H. Moskow; Mark
W. Olson; Anthony M. Santomero; and Gary H. Stern.
In a related action, the Board of Governors unanimously approved a
25-basis-point increase in the discount rate to 4 percent. In taking this
action, the Board approved the requests submitted by the Boards of Directors
of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland,
Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and
San Francisco.
2005 Monetary policy
Home | News and events
Accessibility
Last update: May 3, 2005
This is not an
offer (or solicitation of an offer) to buy/sell the securities/instruments
mentioned or an official confirmation. Morgan Stanley may deal as principal in
or own or act as market maker for securities/instruments mentioned or may
advise the issuers. This is not research and is not from MS
Research but it may refer to a research analyst/research report. Unless
indicated, these views are the author's and may differ from those of Morgan
Stanley research or others in the Firm. We do not represent this is accurate
or complete and we may not update this. Past performance is not indicative of
future returns. For additional information, research reports and important
disclosures, contact me or see https://secure.ms.com/servlet/cls.
You should not use e-mail to request, authorize or effect the purchase or sale
of any security or instrument, to send transfer instructions, or to effect any
other transactions. We cannot guarantee that any such requests received via
e-mail will be processed in a timely manner. This communication is solely for
the addressee(s) and may contain confidential information. We do not waive
confidentiality by mistransmission. Contact me if you do not wish to receive
these communications. In the UK, this communication is directed in the UK to
those persons who are market counterparties or intermediate customers (as
defined in the UK Financial Services Authority's rules).
No virus found in this incoming message.
Checked by AVG
Anti-Virus.
Version: 7.0.308 / Virus Database: 266.11.2 - Release Date:
5/2/2005
Yahoo! Groups Links
|
No virus found in this outgoing message.
Checked by AVG Anti-Virus.
Version: 7.0.308 / Virus Database: 266.11.2 - Release Date: 5/2/2005
|