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

As far as the directive is concerned, the wording can be found 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 in output. To further its long-run

objectives, the Committee in the immediate future seeks conditions in reserve markets consistent

with maintaining the federal funds rate at an average of around 1 percent.”

With regard to the wording also being voted on, taking Vincent’s revised draft, sentence

number 6, of course, is unchanged from last time. It reads: “The Committee perceives that the

upside and downside risks to the attainment of sustainable growth for the next few quarters are

roughly equal.” And then we have the revised wording under alternative B for sentences 7 and 8:

“Similarly, the risks to the goal of price stability have moved into balance. At this juncture, with

inflation low and resource use slack, the Committee believes that policy accommodation can be

removed at a pace that is likely to be measured.”

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