June 21–22, 2011 FOMC Minutes

Our reading

The minutes read consistent with the statement because both documents describe the economic recovery as continuing at a moderate but slower-than-expected pace, attribute the slowdown to temporary factors like supply chain disruptions and commodity price increases, note that inflation has picked up but is expected to subside, and agree on maintaining the current policy stance—keeping the federal funds rate at 0 to 1/4 percent and completing the $600 billion Treasury purchase program—while acknowledging uncertainty in the outlook.

FOMC minutes

To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee continues to anticipate that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate for an extended period. The Committee will complete its purchases of $600 billion of longer-term Treasury securities by the end of this month and will maintain its existing policy of reinvesting principal payments from its securities holdings. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.

The Committee will monitor the economic outlook and financial developments and will act as needed to best foster maximum employment and price stability."

Voting for this action: Ben Bernanke, William C. Dudley, Elizabeth Duke, Charles L. Evans, Richard W. Fisher, Narayana Kocherlakota, Charles I. Plosser, Sarah Bloom Raskin, Daniel K. Tarullo, and Janet L. Yellen.

Voting against this action: None.