FOMC Monetary Policy Statement July 30-31 Meeting - Text>

--June 18-19 Statement Follows for Comparison     

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

statement issued Wednesday. The June 18-19 statement follows for 

comparison: 

     Information received since the Federal Open Market Committee met in 

June indicates that the labor market remains strong and that economic 

activity has been rising at a moderate rate. Job gains have been solid, 

on average, in recent months, and the unemployment rate has remained 

low. Although growth of household spending has picked up from earlier in 

the year, growth of business fixed investment has been soft. On a 

12-month basis, overall inflation and inflation for items other than 

food and energy are running below 2 percent. Market-based measures of 

inflation compensation remain low; survey-based measures of longer-term 

inflation expectations are little changed. 

     Consistent with its statutory mandate, the Committee seeks to 

foster maximum employment and price stability. In light of the 

implications of global developments for the economic outlook as well as 

muted inflation pressures, the Committee decided to lower the target 

range for the federal funds rate to 2 to 2-1/4 percent. This action 

supports the Committee's view that sustained expansion of economic 

activity, strong labor market conditions, and inflation near the 

Committee's symmetric 2 percent objective are the most likely outcomes, 

but uncertainties about this outlook remain. As the Committee 

contemplates the future path of the target range for the federal funds 

rate, it will continue to monitor the implications of incoming 

information for the economic outlook and will act as appropriate to 

sustain the expansion, with a strong labor market and inflation near its 

symmetric 2 percent objective. 

     In determining the timing and size of future adjustments to the 

target range for the federal funds rate, the Committee will assess 

realized and expected economic conditions relative to its maximum 

employment objective and its symmetric 2 percent inflation objective. 

This assessment will take into account a wide range of information, 

including measures of labor market conditions, indicators of inflation 

pressures and inflation expectations, and readings on financial and 

international developments. 

     The Committee will conclude the reduction of its aggregate 

securities holdings in the System Open Market Account in August, two 

months earlier than previously indicated. 

     Voting for the monetary policy action were Jerome H. Powell, Chair; 

John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; James 

Bullard; Richard H. Clarida; Charles L. Evans; and Randal K. Quarles. 

Voting against the action were Esther L. George and Eric S. Rosengren, 

who preferred at this meeting to maintain the target range for the 

federal funds rate at 2-1/4 to 2-1/2 percent. 

-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*- 

     The following is the text of the FOMC statement released after the 

policy meeting held June 18 - 19:

   Information received since the Federal Open Market Committee met in 

May indicates that the labor market remains strong and that economic 

activity is rising at a moderate rate. Job gains have been solid, on 

average, in recent months, and the unemployment rate has remained low. 

Although growth of household spending appears to have picked up from 

earlier in the year, indicators of business fixed investment have been 

soft. On a 12-month basis, overall inflation and inflation for items 

other than food and energy are running below 2 percent. Market-based 

measures of inflation compensation have declined; survey-based measures 

of longer-term inflation expectations are little changed. 

     Consistent with its statutory mandate, the Committee seeks to 

foster maximum employment and price stability. In support of these 

goals, the Committee decided to maintain the target range for the 

federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to 

view sustained expansion of economic activity, strong labor market 

conditions, and inflation near the Committees symmetric 2 percent 

objective as the most likely outcomes, but uncertainties about this 

outlook have increased. In light of these uncertainties and muted 

inflation pressures, the Committee will closely monitor the implications 

of incoming information for the economic outlook and will act as 

appropriate to sustain the expansion, with a strong labor market and 

inflation near its symmetric 2 percent objective. 

     In determining the timing and size of future adjustments to the 

target range for the federal funds rate, the Committee will assess 

realized and expected economic conditions relative to its maximum 

employment objective and its symmetric 2 percent inflation objective. 

This assessment will take into account a wide range of information, 

including measures of labor market conditions, indicators of inflation 

pressures and inflation expectations, and readings on financial and 

international developments. 

     Voting for the monetary policy action were Jerome H. Powell, Chair; 

John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard 

H. Clarida; Charles L. Evans; Esther L. George; Randal K. Quarles; and 

Eric S. Rosengren. Voting against the action was James Bullard, who 

preferred at this meeting to lower the target range for the federal 

funds rate by 25 basis points. 

     Voting for the FOMC monetary policy action were: Jerome H. Powell, 

Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; 

James Bullard; Richard H. Clarida; Charles L. Evans; Esther L. George; 

Randal K. Quarles; and Eric S. Rosengren

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

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