Accessible Material
Skip heading
October 2008 Bluebook Tables and Charts
Policy Alternatives
Table 1: Alternative Language for the October 29 FOMC Announcement
October 8 Statement | Alternative A | Alternative B | Alternative C | |
---|---|---|---|---|
Policy Decision | 1. The Federal Open Market Committee has decided to lower its target for the federal funds rate 50 basis points to 1½ percent. | The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent. | The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 1¼ percent. | The Federal Open Market Committee decided today to keep its target for the federal funds rate at 1½ percent. |
Rationale | 2. The Committee took this action in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures. Incoming economic data suggest that the pace of economic activity has slowed markedly in recent months. Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit. | The outlook for economic activity has weakened, and downside risks to growth appear to have increased. Consumer spending and industrial production have declined in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports. Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit. | The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures. Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit. | Reflecting in part the intensification of financial market turmoil, the outlook for economic activity has weakened. Consumer spending and industrial production have declined in recent months. However, policy actions taken in recent weeks, including coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth. |
3. Inflation has been high, but the Committee believes that the decline in energy and other commodity prices and the weaker prospects for economic activity have reduced the upside risks to inflation. | In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate in coming quarters to levels consistent with price stability. | In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate in coming quarters to levels consistent with price stability. | Inflation has been high, but the Committee believes that the declines in the prices of energy and other commodities and the weaker prospects for economic activity have reduced the upside risks to inflation. | |
Assessment of Risk | 4. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability. | The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability. | Policy actions taken in recent weeks, including coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth. Nevertheless, significant downside risks to growth remain. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability. | In these circumstances, the Committee's primary concern is the downside risks to growth. The Committee will monitor economic and financial developments carefully in light of the recent policy actions and will act as needed to promote sustainable economic growth and price stability. |
Last update: March 7, 2014