FOMC Minutes: Move Justified

Forris, Craig T.
January 2005
Bond Buyer;1/5/2005, Vol. 351 Issue 32043, p2
Trade Publication
The article reports that members of the Federal Open Market Committee (FOMC) said the economy appeared to be continuing to expand at the same moderate pace as in the last few months, but the outlook justified further moderate tightening of monetary policy, meriting an increase in the Fed funds rate to 2.23% from 2%. All FOMC members agreed that the interest rate policy accommodation could be removed at a pace that was likely to be measured but that the committee would respond to changes in economic prospects as needed to maintain price stability.


Related Articles

  • Anticipations of Monetary Policy in Financial Markets. Lange, Joe; Sack, Brian; Whitecell, William // Working Papers -- U.S. Federal Reserve Board's Finance & Economi;2001, p1 

    Financial markets seem to better anticipate Federal Open Market Committee (FOMC) policy changes. In the late 1980s and early 1990s, longer-term interest rates and futures rates had a tendency to incorporate movements in the federal funds rate several months in advance, in contradiction of the...

  • The identification of the response of interest rates to monetary policy actions using market-based measures of monetary policy shocks. Thornton, Daniel L. // Oxford Economic Papers;Jan2014, Vol. 66 Issue 1, p67 

    It has become common practice to estimate the response of asset prices to monetary policy actions using market-based measures such as the unexpected change in the federal funds futures rate as proxies for monetary policy shocks. I show that because interest rates and market-based measures of...

  • Changes in the Responding Mechanism of the Federal Funds Rate to the Housing and Mortgage Markets. He, Ling T. // International Journal of Business & Economics;2007, Vol. 6 Issue 1, p35 

    This study uses an error correction model to explore changes in the responding mechanism of the effective federal funds rate to changes in mortgage and housing sectors. Results of the error correction model suggest that shocks in the levels of mortgage rates, existing home sales, and home prices...

  • Central Bank likely to hold interest rates steady. Hoxter, Curtis J. // Caribbean Business;3/8/2007, Vol. 35 Issue 9, p12 

    The article focuses on the plan to hold U.S. Central Bank's interest rates steady. It has been indicated by Federal Reserve Chairman Ben S. Bernanke these calm interest rates motivated the rally on securities industry, pushing the Dow Jones industrial average to high record. Bernanke believes...

  • The Response of Term Rates to Fed. DEMIRALP, SELVA; JORDÀ, ÒSCAR // Journal of Money, Credit & Banking (Ohio State University Press);Jun2004 Part 1 of 2, Vol. 36 Issue 3, p387 

    In February 4, 1994 the Federal Reserve began the practice of announcing changes in the targeted level for the federal funds rate immediately after such decisions were made. This paper investigates to what extent the policy of "the announcement" affected a key ingredient in the monetary...

  • Taking the measure of 'measured' Beckner, Steven K. // Futures: News, Analysis & Strategies for Futures, Options & Deri;Jul2004, Vol. 33 Issue 9, p30 

    Reports on the measures being taken by the U.S. Federal Reserve Board policymakers to raise the federal funds rate in the U.S. Impact of job growth on raising rates; Determining measure for the path of funds rate; Factor that would affect the economy.

  • Not a Pretty Picture. Rogoff, Kenneth // International Economy;Winter2009, Vol. 23 Issue 1, p76 

    The article focuses on the condition of global economy in the coming years. According to experts, interest rates on long-term U.S. Treasury notes will rise 3 to 4 percent within the couple of years. Moreover, income in the U.S. and euro areas will also decline 4 to 5 percent in 2009, together...

  • Fed Keeps Interest Rates Unchanged.  // Chemical Market Reporter;8/18/2003, Vol. 264 Issue 5, p22 

    Reports on the election at the U.S. Federal Reserve Board to keep interest rates unchanged as its Federal Open Market Committee decided to keep its target for the federal funds rate at one percent.

  • Long-Term Volume Hits $96.6B, Setting New First-Quarter Record. Walker, Susanne // Bond Buyer;4/1/2005, Vol. 352 Issue 32102, p1 

    The article reports that long-term municipal bonds hit $96.6 billion in 3,093 issues setting new first-quarter record. The expectations of higher rate increases convinced issuers to refund their bonds. A significant percentage of the total increase in the first quarter of 2005 came from...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics