June 19–20 · Published July 11, 2012
Statement·Presser·Minutes·Policy
BBBen S. BernankeJune 19–20, 2012 FOMC Minutes
Our reading
The minutes are consistent with the statement because they provide a detailed, behind-the-scenes account of the FOMC's deliberations that directly align with the statement's key points, such as the moderate economic expansion, slowed employment growth, elevated unemployment, declining inflation due to lower oil and gasoline prices, stable longer-term inflation expectations, and the decision to maintain the federal funds rate at 0 to 1/4 percent and continue the maturity extension program through the end of the year.
Our reading compares the minutes of the June 19–20 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 opposed continuation of the maturity extension program. He did not believe that further monetary stimulus at this time would make a substantial difference for economic growth and employment without also increasing inflation by more than would be desirable. In Mr. Lacker's view, the outlook for economic growth had clearly weakened of late, but he questioned whether the maturity extension program would have much effect in current circumstances. Should inflation fall substantially and persistently below the Committee's 2 percent goal, however, he felt that monetary stimulus might then be appropriate to ensure the return of inflation toward target.
- Dennis P. Lockhart
- Sandra Pianalto
- Jerome H. Powell
- Sarah Bloom Raskin
- Jeremy C. Stein
- 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, Jerome H. Powell, Sarah Bloom Raskin, Jeremy C. Stein, Daniel K. Tarullo, John C. Williams, and Janet L. Yellen.
Voting against this action: Jeffrey M. Lacker.
Mr. Lacker dissented because he opposed continuation of the maturity extension program. He did not believe that further monetary stimulus at this time would make a substantial difference for economic growth and employment without also increasing inflation by more than would be desirable. In Mr. Lacker's view, the outlook for economic growth had clearly weakened of late, but he questioned whether the maturity extension program would have much effect in current circumstances. Should inflation fall substantially and persistently below the Committee's 2 percent goal, however, he felt that monetary stimulus might then be appropriate to ensure the return of inflation toward target.
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, July 31-August 1, 2012. The meeting adjourned at 11:05 a.m. on June 20, 2012.
What changed from the previous meeting’s minutes
- Unemployment rate decline now attributed to structural factors, replacing earlier cyclical emphasis.
- Participants upgraded fiscal cliff concerns: defense contractors cutting workforces, not just deferring hiring.
- Inflation slowed in June, versus picked up in April; oil prices fell instead of rising.
- FOMC extended maturity extension program through December 2012; April only continued existing one.
- Dollar appreciation noted in June as export risk; absent in April minutes.
- Lacker dissented in June over maturity program; April dissent was over late-2014 guidance.
Summary generated automatically from the two documents.