FOMC Excerpt: Plans to Make IOER Technical Adjustment Soon >

WASHINGTON (MNI) - The following is an excerpt from the Federal Open 

Market Committee minutes of the November 7 - 8 meeting, published 

Thursday:

     "Following the Desk briefings, the Chairman noted the upward trend 

in the EFFR relative to the IOER rate over the intermeeting period and 

suggested that it might be appropriate to implement another technical 

adjustment in the IOER rate relative to the top of the target range for 

the federal funds rate fairly soon. While the funds rate seemed to have 

stabilized recently, there remained some risk that it could continue to 

drift higher before the Committees next meeting. As a contingency plan, 

participants agreed that it would be appropriate for the Board to 

implement such a technical adjustment in the IOER rate before the 

December meeting if necessary to keep the federal funds rate well 

within the target range established by the FOMC". 

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

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