Good News From the Fed.
Text of Fed Statement
August 7, 2007 2:15 p.m.
Below is the text of the Federal Open Market Committee’s statement from its
meeting August 7, 2007.
The Federal Open Market Committee decided today to keep its target for the
federal funds rate at 5-1/4 percent.
Economic growth was moderate during the first half of the year. Financial
markets have been volatile in recent weeks, credit conditions have become
tighter for some households and businesses, and the housing correction is
ongoing. Nevertheless, the economy seems likely to continue to expand at a
moderate pace over coming quarters, supported by solid growth in employment
and incomes and a robust global economy.
Readings on core inflation have improved modestly in recent months. However,
a sustained moderation in inflation pressures has yet to be convincingly
demonstrated. Moreover, the high level of resource utilization has the
potential to sustain those pressures.
Although the downside risks to growth have increased somewhat, the
Committee’s predominant policy concern remains the risk that inflation will
fail to moderate as expected. Future policy adjustments will depend on the
outlook for both inflation and economic growth, as implied by incoming
information.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman;
Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn;
Randall S. Kroszner; Frederic S. Mishkin; Michael H. Moskow; William Poole;
Eric Rosengren; and Kevin M. Warsh.