Federal Open Market Committee statement

Federal Reserve Bulletin, Winter, 2004

The Federal Open Market Committee decided, on December 9, 2003, 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 confirmed that output was expanding briskly, and the labor market appeared to be improving modestly. Increases in core consumer prices were muted and expected to remain low.

The Committee perceived that the upside and downside risks to the attainment of sustainable growth for the next few quarters would be roughly equal. The probability of an unwelcome fall in inflation had diminished in recent months and appeared almost equal to that of a rise in inflation. However, with inflation quite low and resource use slack, the Committee believed that policy accommodation could be maintained for a considerable period.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Ben S. Bernanke; Susan S. Bies; J. Alfred Broaddus, Jr.; Roger W. Ferguson, Jr.; Edward M. Gramlich; Jack Guynn; Donald L. Kohn; Michael H. Moskow; Mark W. Olson; and Robert T. Parry.