FOMC Statement — 2004-05-04

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 indicates that output is continuing to expand 
        at a solid rate and hiring appears to have picked up. Although incoming 
        inflation data have moved somewhat higher, long-term inflation expectations 
        appear to have remained well contained. 
       The Committee perceives the upside and downside risks to the attainment 
        of sustainable growth for the next few quarters are roughly equal. Similarly, 
        the risks to the goal of price stability have moved into balance. At this 
        juncture, with inflation low and resource use slack, the Committee believes 
        that policy accommodation can be removed at a pace that is likely to be 
        measured.
       Voting for the FOMC monetary policy actions 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.
      
      
        
        2004 Monetary policy 
      
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       Last update: May 4, 2004