FOMC Balance Sheet Statement January 30 Meeting - Text>

     WASHINGTON (MNI) - The following is the complete text of the FOMC 

Statement Regarding Monetary Policy Implementation and Balance 

Sheet Normalization issued Wednesday. 

     After extensive deliberations and thorough review of experience to 

date, the Committee judges that it is appropriate at this time to 

provide additional information regarding its plans to implement monetary 

policy over the longer run. Additionally, the Committee is revising its 

earlier guidance regarding the conditions under which it could adjust 

the details of its balance sheet normalization program. Accordingly, all 

participants agreed to the following: 

     - The Committee intends to continue to implement monetary policy in 

a regime in which an ample supply of reserves ensures that control over 

the level of the federal funds rate and other short-term interest rates 

is exercised primarily through the setting of the Federal Reserves 

administered rates, and in which active management of the supply of 

reserves is not required. 

     - The Committee continues to view changes in the target range for 

the federal funds rate as its primary means of adjusting the stance of 

monetary policy. The Committee is prepared to adjust any of the details 

for completing balance sheet normalization in light of economic and 

financial developments. Moreover, the Committee would be prepared to use 

its full range of tools, including altering the size and composition of 

its balance sheet, if future economic conditions were to warrant a more 

accommodative monetary policy than can be achieved solely by reducing 

the federal funds rate. 

--MNI Washington Bureau, Tel: +1 202-371-2121; email: dcoffice@marketnews.com

[TOPICS: MT$$$$,MMUFE$,MGU$$$,M$U$$$]