FEDERAL OPEN MARKET COMMITTEE DIRECTIVE.The Federal Open Market Committee at its meeting on October October: see month. 3, 2000, decided to maintain the existing stance of monetary policy, keeping its target for the federal funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. at 6 1/2 percent. Recent data have indicated that the expansion of aggregate demand has moderated to a pace closer to the enhanced rate of growth of the economy's potential to produce. The more rapid advances in productivity also continue to help contain costs and hold down underlying price pressures. However, the utilization of the pool of available workers remains at an unusually high level. Moreover, the increase in energy prices, though having limited effect on core measures of prices to date, poses a risk of raising inflation expectations. The subdued sub·due tr.v. sub·dued, sub·du·ing, sub·dues 1. To conquer and subjugate; vanquish. See Synonyms at defeat. 2. To quiet or bring under control by physical force or persuasion; make tractable. 3. behavior of those expectations so far has contributed importantly to maintaining an environment conducive con·du·cive adj. Tending to cause or bring about; contributive: working conditions not conducive to productivity. See Synonyms at favorable. to maximum sustainable growth. Against the background of its long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. of price stability and sustainable economic growth and of the information currently available, the Committee believes the risks continue to be weighted mainly toward conditions that may generate heightened inflation pressures in the future. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion