Press Release: FOMC rates to remain at 1%

[CaptainClark23]

Release Date: December 9, 2003



For immediate release

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 1 percent.

The Committee continues to believe that an accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity. The evidence accumulated over the intermeeting period confirms that output is expanding briskly, and the labor market appears to be improving modestly. Increases in core consumer prices are muted and expected to remain low.

The Committee perceives that the upside and downside risks to the attainment of sustainable growth for the next few quarters are roughly equal. The probability of an unwelcome fall in inflation has diminished in recent months and now appears almost equal to that of a rise in inflation. However, with inflation quite low and resource use slack, the Committee believes that policy accommodation can be maintained for a considerable period.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Ben S. Bernanke; Susan S. Bies; J. Alfred Broaddus, Jr.; Roger W. Ferguson, Jr.; Edward M. Gramlich; Jack Guynn; Donald L. Kohn; Michael H. Moskow; Mark W. Olson; and Robert T. Parry.

http://www.federalreserve.gov/boarddocs/press/monetary/2003/20031209/


on edit:

There's that "considerable" word again.

Tighten up the chinstraps, kids...let loose the Lemmings of Wall!

[tritsofme]

1. Watch the dollar drop!

nt

[twilight]

3. just did - now the $ is worth $.81

Buy those stocks! Buy those stocks! :grr:

Euro 12/09-14:39 0.8166 1.2246

:dem: :kick:

[Frodo]

2. Tried to play it both ways.

Left in the "considerable period" language, but says the risk of deflation is gone.

So they're saying the next thing they'll worry about is INflation and they "hint hint, nudge nudge" the currency markets that they will start raising rates eventually while they "hin hint, nudge nudge" the stock market that rates will stay low.

Let's see which side buys it.