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FOMC Monetary Policy Statement Oct 30 Meeting - Text>

--September 18 Statement Follows for Comparison     
     WASHINGTON (MNI) - The following is the complete text of the FOMC 
statement issued Wednesday. The September 18 statement follows for 
comparison: 
     Information received since the Federal Open Market Committee met in 
September 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 household spending has been rising at a strong 
pace, business fixed investment and exports remain weak. 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 1-1/2 to 1-3/4 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. The Committee will continue 
to monitor the implications of incoming information for the economic 
outlook as it assesses the appropriate path of the target range for the 
federal funds rate. 
     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; James 
Bullard; Richard H. Clarida; Charles L. Evans; and Randal K. Quarles. 
Voting against this action were: Esther L. George and Eric S. Rosengren, 
who preferred at this meeting to maintain the target range at 1-3/4 
percent to 2 percent. 
-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*- 
    Information received since the Federal Open Market Committee met in 
July 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 household spending has been rising at a strong pace, 
business fixed investment and exports have weakened. 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 1-3/4 to 2 percent. This action 
supports the Committees view that sustained expansion of economic 
activity, strong labor market conditions, and inflation near the 
Committees 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 monitorthe 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; and Randal K. Quarles. 
     Voting against the action were James Bullard, who preferred at this 
meeting to lower the target range for the federal funds rate to 1-1/2 to 
1-3/4 percent; and Esther L. George and Eric S. Rosengren, who preferred 
to maintain the target range at 2 percent to 2-1/4 percent. 
--MNI Washington Bureau, Tel: +1 202-371-2121; email: dcoffice@marketnews.com
[TOPICS: MT$$$$,MMUFE$,MGU$$$,M$U$$$]

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