April 24–25 · Published May 16, 2012
BBBen S. BernankeApril 24–25, 2012 FOMC Minutes
Our reading
The minutes are consistent with the statement because they reflect the same key economic assessments and policy decisions, including moderate growth, improved but elevated unemployment, temporary inflation from energy prices, and the decision to maintain the federal funds rate at 0-1/4% through late 2014, while also detailing the discussion and individual viewpoints that informed the collective statement.
Our reading compares the minutes of the April 24–25 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Ben S. Bernanke
- William C. Dudley
- Elizabeth A. Duke
- Jeffrey M. Lacker ↑ dissented
- Mr. Lacker dissented because he did not believe that economic conditions were likely to warrant exceptionally low levels of the federal funds rate through late 2014. In his view, an increase in the federal funds rate was likely to be necessary by mid-2013 to prevent the emergence of inflationary pressures.
- Dennis P. Lockhart
- Sandra Pianalto
- Sarah Bloom Raskin
- Daniel K. Tarullo
- John C. Williams
- Janet L. Yellen
From the minutes
FOMC minutes
Voting for this action: Ben Bernanke, William C. Dudley, Elizabeth Duke, Dennis P. Lockhart, Sandra Pianalto, Sarah Bloom Raskin, Daniel K. Tarullo, John C. Williams, and Janet L. Yellen.
Voting against this action: Jeffrey M. Lacker.
Mr. Lacker dissented because he did not believe that economic conditions were likely to warrant exceptionally low levels of the federal funds rate through late 2014. In his view, an increase in the federal funds rate was likely to be necessary by mid-2013 to prevent the emergence of inflationary pressures.
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, June 19-20, 2012. Because some participants had expressed a preference for the two-day format over the one-day format for FOMC meetings, the Chairman raised the possibility of revising the FOMC meeting schedule to incorporate more two-day meetings to allow additional time for discussion. The meeting adjourned at 11:10 a.m. on April 25, 2012.
What changed from the previous meeting’s minutes
- Lacker's dissent changed from opposing guidance through late 2014 to expecting a rate increase by mid-2013.
- Minutes noted inflation currently above the 2 percent target, versus subdued readings in March.
- Discussion added potential use of simple monetary policy rules as guides for decisions.
- Committee discussed enhancing SEP to clarify link between economic developments and policy stance.
- Statement release time changed from 2:15 p.m. to 12:30 p.m.
- Next meeting scheduled for June 19-20, 2012, with possible shift to more two-day meetings.
Summary generated automatically from the two documents.