Release Date: January 28, 2004
For immediate release
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 1 percent.
The Committee continues to believe that an accommodative stance of monetary policy, coupled with robust underlying
growth in productivity, is providing important ongoing support to economic activity. The evidence accumulated over the
intermeeting period confirms that output is expanding briskly. Although new hiring remains subdued, other indicators
suggest an improvement in the labor market. Increases in core consumer prices are muted and expected to remain low.
The Committee perceives that the upside and downside risks to the attainment of sustainable growth for the next few
quarters are roughly equal. The probability of an unwelcome fall in inflation has diminished in recent months and now
appears almost equal to that of a rise in inflation. With inflation quite low and resource use slack, the Committee
believes that it can be patient in removing its policy accommodation.
Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Ben S.
Bernanke; Susan S. Bies; Roger W. Ferguson, Jr.; Edward M. Gramlich; Thomas M. Hoenig; Donald L. Kohn; Cathy E. Minehan;
Mark W. Olson; Sandra Pianalto; and William Poole.
ENDS