What They Were Thinking: FOMC Minutes

Minutes of the Federal Open Market Committee (FOMC) on Dec. 11, 2007, and a telephone meeting on Dec. 6, 2007, are available on the Federal Reserve website.  On Dec. 11th, the FOMC lowered the target federal funds rate to 4 1/4%, with one dissenting vote. The minutes reflect considerable discussion about housing market issues, financial markets, banking industry issues relating to credit risk, and projected inflation.

Link:  http://www.federalreserve.gov/monetarypolicy/files/fomcminutes20071211.pdf

The delay between the FOMC meetings and the posting of minutes is likely meant to minimize the risk of an unintended Wall Street reaction to interest rate adjustments.  On Jan. 5, 2008, Federal Reserve Governor Donald L. Kohn discussed the communication issues surrounding Federal Reserve actions.

Link to speech:  http://www.federalreserve.gov/newsevents/speech/kohn20080105a.htm

(ag) Jan. 9, 2009, in Economy/Interest Rates