FOMC Excerpt: Postmeeting Statement Lang May Be Revised -Text>

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

Market Committee minutes of the July 31-August 1 meeting, published 

Wednesday:

     "Many participants noted that it would likely be appropriate in 

the not-too-distant future to revise the Commit-tees characterization 

of the stance of monetary policy in its postmeeting statement. They 

agreed that the statements language that the stance of monetary 

policy remains accommodative would, at some point fairly soon, no 

longer be appropriate. Participants noted that the federal funds rate 

was moving closer to the range of estimates of its neutral level. A 

number of participants emphasized the considerable uncertainty in 

estimates of the neutral rate of interest, stemming from sources such as 

fiscal policy and large-scale asset purchase programs. Against this 

background, continuing to provide an explicit assessment of the federal 

funds rate relative to its neutral level could convey a false sense of 

precision." 

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

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