FOMC Excerpt:Fin'l Conds Accomodative Despite Volatility-Text>

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

Market Committee minutes of the March 20-21 meeting, published 

Wednesday:

     In their discussion of developments in financial markets, some 

participants observed that financial conditions remained accommodative 

despite the rise in market volatility and repricing of assets that had 

occurred in February. Many participants reported that their contacts had 

taken the previous months turbulence in stride, although a few 

participants suggested that financial developments over the intermeeting 

period highlighted some downside risks associated with still-high 

valuations for equities or from market volatility more generally. A few 

participants expressed concern that a lengthy period in which the 

economy operates beyond potential and financial conditions remain highly 

accommodative could, over time, pose risks to financial stability.   

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

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