FOMC Excerpt: Could Revise Forward Guidance Language-Text>

WASHINGTON (MNI) - The following are excerpts from the Federal Open 

Market Committee minutes of the May 1 - 2 meeting, published Wednesday:

     Participants commented on how the Committees communications in its 

postmeeting statement might need to be revised in coming meetings if the 

economy evolved broadly as expected. A few participants noted that if 

increases in the target range for the federal funds rate continued, the 

federal funds rate could be at or above their estimates of its 

longer-run normal level before too long. In addition, a few observed 

that the neutral level of the federal funds rate might currently be 

lower than their estimates of its longer-run level. In light of this, 

some participants noted it might soon be appropriate to revise the 

forward-guidance language in the statement indicating that the federal 

funds rate is likely to remain, for some time, below levels that are 

expected to prevail in the longer run or to modify the language stating 

that the stance of monetary policy remains accommodative. Participants 

expressed a range of views on the amount of further policy firming that 

would likely be required over the medium term to achieve the Committees 

goals. Participants indicated that the Committee, in making policy 

decisions over the next few years, should conduct policy with the aim of 

keeping inflation near its longerrun symmetric objective while 

sustaining the economic expansion and a strong labor market. 

Participants agreed that the actual path of the federal funds rate would 

depend on the economic outlook as informed by incoming information. 

     ** MNI Washington Bureau: (202)371-2121 ** 

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