Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

First, with regard to the directive wording, which is on page 14 of the Bluebook: “The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability and promote sustainable growth and output. To further its long-run objectives, the Committee in the immediate future seeks conditions in reserve markets consistent with increasing the federal funds rate to an average of around 1½ percent.”

I will also read the sentence regarding the assessment of risks, which the Committee is also voting on. But before I get to that, I was asked to note that in box 4 under alternative B—and this, I guess, would be the fourth revision—the end of that sentence which says “prices evidently reflect transitory factors” should read “prices seem to reflect transitory factors.” What I will be reading now is the language shown under June FOMC in boxes 5 and 6: “The Committee perceives the upside and downside risks to the attainment of both sustainable growth and price stability for the next few quarters are roughly equal. With underlying inflation still expected to be relatively low, 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.”

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