FOMC Retains The Phrase -- And The 1% Short-Term Interest Rate

Jan. 13, 2005
By John S. McClenahen For about a week leading up to the Dec. 9 meeting of the Federal Open Market Committee (FOMC), the only question was whether the panel would continue to describe monetary policy as accommodative for "a considerable period." ...
ByJohn S. McClenahen For about a week leading up to the Dec. 9 meeting of the Federal Open Market Committee (FOMC), the only question was whether the panel would continue to describe monetary policy as accommodative for "a considerable period." Omitting the phrase from its post-meeting statement, it was presumed, would be a signal that FOMC Chairman Alan Greenspan and his colleagues were likely to raise interest rates in 2004. Keeping it in their statement would suggest no hike in rates. The FOMC retained the phrase in its Dec. 9 statement. "With inflation quite low and resource use slack, the Committee believes that policy accommodation can be maintained for a considerable period." But in a notable departure from the statements following meetings earlier this year, the FOMC in effect said it's no longer concerned about deflation, a falling of prices across the U.S. economy. "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." The FOMC, as expected, left the influential federal funds rate target at 1%, a four-decade low.

Popular Sponsored Recommendations

From Data to Action: Enabling the Connected Enterprise with a Digital Thread

Feb. 8, 2024
Manufacturers are transforming the enterprise with cloud technologies and IoT

S&OP Optimization: Data-driven Strategies to Achieve Sustainable Profitability

Feb. 6, 2024
Through collaborative S&OP, manufacturers can balance demand and supply effectively, optimize resources, and capitalize on emerging market opportunities. Learn how to maximize...

Sprint Implementation for Digital Transformation

Feb. 1, 2024
Discover a revolutionary approach to digital transformation. Uncover the flaws in current methods that cause 70% project failure rate. Learn how sprint implementation can maximize...

How to Build a Predictive Maintenance Program: Lessons Learned from LSB Industries’ Success

Dec. 21, 2023
Register today and join this webinar to gain insight on best practices for setting up a predictive maintenance program from industry experts.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!