FOMC statement following June 26-27 meeting
WASHINGTON, June 27 (Reuters) - The following is the full text of the Federal Open Market Committee's statement on interest rate policy issued on Wednesday following a two-day meeting:
"The Federal Open Market Committee at its meeting today decided to lower
its target for the federal funds rate by 25 basis points to 3-3/4
percent. In a related action, the Board of Governors approved a 25 basis
point reduction in the discount rate to 3-1/4 percent. Today's action by
the FOMC brings the decline in the target federal funds rate since the
beginning of the year to 275 basis points.
The patterns evident in recent months--declining profitability and
business capital spending, weak expansion of consumption, and slowing
growth abroad--continue to weigh on the economy. The associated easing of
pressures on labor and product markets are expected to keep inflation
contained.
Although continuing favorable trends bolster long-term prospects for
productivity growth and the economy, the Committee continues to believe
that against the background of its long-run goals of price stability and
sustainable economic growth and of the information currently available,
the risks are weighted mainly toward conditions that may generate
economic weakness in the foreseeable future.
In taking the discount rate action, the Federal Reserve Board approved
requests submitted by the Boards of Directors of the Federal Reserve
Banks of Boston, New York, Philadelphia, Atlanta, Chicago, Dallas and San
Francisco." |
