FOMC Statement — 2003-12-09

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 confirms that output is expanding briskly, 
        and the labor market appears to be improving modestly. Increases in core 
        consumer prices are muted and expected to remain low.
 The Committee perceives 
        that the upside and downside risks to the attainment of sustainable growth 
        for the next few quarters are roughly equal. The probability of an unwelcome 
        fall in inflation has diminished in recent months and now appears almost 
        equal to that of a rise in inflation. However, with inflation quite low 
        and resource use slack, the Committee believes that policy accommodation 
        can 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. 
      
        
        2003 Monetary policy 
      
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       Last update: December 9, 2003