Federal Open Market Committee Statement 03/28/06

The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 4-3/4 percent.

The slowing of the growth of real GDP in the fourth quarter of 2005 seems largely to have reflected temporary or special factors. Economic growth has rebounded strongly in the current quarter but appears likely to moderate to a more sustainable pace. As yet, the run-up in the prices of energy and other commodities appears to have had only a modest effect on core inflation, ongoing productivity gains have helped to hold the growth of unit labor costs in check, and inflation expectations remain contained. Still, possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures.

The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance. In any event, the Committee will respond to changes in economic prospects as needed to foster these objectives.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn; Randall S. Kroszner; Jeffrey M. Lacker; Mark W. Olson; Sandra Pianalto; Kevin M. Warsh; and Janet L. Yellen.

In a related action, the Board of Governors approved a 25-basis-point increase in the discount rate to 5-3/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Dallas, and San Francisco.

Release Date: March 28, 2006, For immediate release. 2006 Monetary policy

Technorati Tags: President Bush and Dr. Ben S. Bernanke or Ben S. Bernanke and Ben Bernanke or Bernanke and Federal Reserve or Chairman of the Federal Reserve and Monetary policy or Federal Open Market Committee and federal funds rate

Related: Wednesday, February 15, 2006 Chairman Ben S. Bernanke, Semiannual Monetary Policy Report, Monday, February 06, 2006 President Attends Swearing-In Ceremony for Federal Reserve Chairman Ben Bernanke VIDEO, Monday, October 24, 2005 Appointment Ben Bernanke Federal Reserve (VIDEO), Monday, October 24, 2005 Biography of Dr. Ben S. Bernanke, Tuesday, June 21, 2005 President Congratulates CEA Chairman Ben Bernanke (VIDEO)

President Announces Bolten as Chief of Staff (VIDEO)

President Thanks Andy Card, Announces Bolten as New Chief of Staff, FULL STREAMING VIDEO, The Oval Office 8:31 A.M. EST

President George W. Bush shakes the hand of Josh Bolten Tuesday, March 28, 2006, after introducing him as the new Chief of Staff, succeeding Secretary Andrew Card.

' No person is better prepared for this important position, and I'm honored that Josh has agreed to serve,' said the President. White House photo by David Bohrer.

THE PRESIDENT: Earlier this month, Andy Card came to me and raised the possibility of stepping down as Chief of Staff. After five-and-a-half years, he thought it might be time to return to private life, and this past weekend I accepted Andy's resignation

Andy Card has served me and our country in historic times: on a terrible day when America was attacked, during economic recession and recovery, through storms of unprecedented destructive power, in peace and in war. Andy has overseen legislative achievements on issues from education to Medicare. He helped confirm two justices to the Supreme Court, including a new Chief Justice.

In all these challenges and accomplishments, I have relied on Andy's wise counsel, his calm in crisis, his absolute integrity, and his tireless commitment to public service. Andy is respected by his colleagues for his humility, his decency and his thoughtfulness. They have looked to him as a leader and a role model and they, like me, will miss him.

On most days, Andy is the first one to arrive in the West Wing and among the last to leave. And during those long days over many years I've come to know Andy more than my Chief of Staff. He is leaving the White House, but he will always be my friend. Laura and I have known Andy and his wife, Kathi, for more than 20 years, and our close friendship will continue.

With me today is Joshua Bolten, who will be the new White House Chief of Staff. Josh is a man with broad experience, having worked on Capitol Hill and Wall Street and the White House staff, and for nearly three years as a Director of the Office of Management and Budget. Josh is a creative policy thinker. He's an expert on the budget and our economy. He's respected by members of Congress from both parties; he's a strong advocate for effective accountable management in the federal government.

He's a man of candor and humor and directness, who's comfortable with responsibility and knows how to lead. No person is better prepared for this important position, and I'm honored that Josh has agreed to serve.

The next three years will demand much of those who serve our country. We have a global war to fight and win. We have great opportunities to expand the prosperity and compassion of America. We've come far as a nation, yet there's a lot on the road ahead. I'm honored to have served with Andrew Card. I've got great confidence in my next Chief of Staff.

Congratulations, Josh.

DIRECTOR BOLTEN: Mr. President, thank you for those kind words and for your confidence. It's been the privilege of a lifetime to serve in your Cabinet as head of a great organization, the Office of Management and Budget. I'm deeply honored now by the opportunity to succeed Andy Card as White House Chief of Staff.

I say "succeed" Andy Card, and not replace him, because Andy cannot be replaced. His hallmarks of honesty had decency, dedication and courage, have made him not only a great leader of your White House staff, Mr. President, but they've also placed him among the finest public servants of this generation.

Mr. President, the agenda ahead is exciting. You've set a clear course to protect our people at home, to promote freedom abroad, and to expand our prosperity. I'm grateful for Andy's willingness to stay on for a couple of weeks to help break me in, and then I'm anxious to get to work.

Thank you again, Mr. President, for the privilege of serving you and our nation.

SECRETARY CARD: Mr. President, Ecclesiastes reminds us that there are different seasons, and there is a new season. Working in the White House is a tremendous privilege. It's almost beyond description, the great privilege it is to work at the White House. But it is even a greater honor to serve as the President's Chief of Staff, especially to you, Mr. President.

I have watched as you have kept your oath to preserve, protect and defend our Constitution, and I know that there are a lot of people who help you do that, and it starts with the White House staff, goes through everybody who serves in the executive branch of government, and most especially those young men and women who wear uniforms and help defend us.

I've watched your leadership guide them during troubled times. I'm watched you comfort Americans, rally the world to meet real needs. I've watched as you've guided us from a recession to economic recovery. But most of all, I've watched you as a person. And you're a good man, Mr. President, and you do great things.

I'm grateful for the friendship that you've shown me. I'm grateful for the love that Laura has shared with Kathi and with me. I'm grateful for the White House staff that has served you so well and helped me do a better job.

But it is a different season, and Josh Bolten is the right person for that season. I'm excited about the leadership that he will bring to the White House staff and to all of your government, and I'm grateful to the Cabinet that has helped to serve you, as well.

Mr. President, as a Chief of Staff, I know I was a staffer, and now I look forward to being your friend. Thank you, Mr. President.

END 8:37 A.M. EST, For Immediate Release, Office of the Press Secretary, March 28, 2006.

Technorati Tags: President Bush and White House or Andy Card and Chief of Staff, or Josh Bolten and OMB,

Related: Keywords radio address, podcast, Saturday, March 18, 2006 Presidential Podcast 03/18/06, Saturday, March 11, 2006 bush radio address 03/11/06 full audio, text transcript, Saturday, March 04, 2006 bush radio address 03/04/06 full audio, text transcript, Saturday, February 25, 2006 bush radio address 02/25/06 full audio, text transcript, Saturday, February 18, 2006 bush radio address 02/18/06 full audio, text transcript, Saturday, February 04, 2006 bush radio address 02/04/06 full audio, text transcript, Saturday, January 28, 2006, bush radio address 01/28/06 full audio, text transcript, Saturday, January 21, 2006 bush radio address 01/21/06 full audio, text transcript, Saturday, January 14, 2006 bush radio address 01/14/06 full audio, text transcript, Saturday, January 07, 2006 bush radio address 01/07/06 full audio, text transcript, Saturday, December 31, 2005 bush radio address 12/31/05 full audio, text transcript, Saturday, December 24, 2005 bush radio address 12/24/05 full audio, text transcript, Saturday, December 17, 2005 bush radio address 12/17/05 full VIDEO, text transcript, Sunday, December 04, 2005 Presidential Podcast 12/03/05,