June 18–19 · Published July 10, 2013
Statement·Presser·Minutes·Policy
BBBen S. BernankeJune 18–19, 2013 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the FOMC's decision to maintain the current pace of asset purchases ($40 billion per month in MBS and $45 billion per month in Treasury securities) and keep the federal funds rate at 0 to 1/4 percent, while acknowledging moderate economic growth, improved labor market conditions, low inflation partly due to transitory factors, and stable longer-term inflation expectations, with the minutes providing additional detail on the discussion and differing views among participants regarding the timing of any future reduction in purchases.
Our reading compares the minutes of the June 18–19 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Ben S. Bernanke
- James B. Bullard • dissented
- He believed that, in light of recent low readings on inflation, the Committee should signal more strongly its willingness to defend its goal of 2 percent inflation. He pointed out that inflation had trended down since the beginning of 2012 and was now well below target. Going forward, he viewed it as particularly important for the Committee to monitor price developments closely and to adapt its policy in response to incoming economic information.
- William C. Dudley
- Elizabeth A. Duke
- Charles L. Evans
- Esther L. George ↑ dissented
- She viewed the ongoing improvement in labor market conditions and in the outlook as warranting a deliberate statement from the Committee at this meeting that the pace of its asset purchases would be reduced in the very near future. She continued to have concerns about maintaining aggressive monetary stimulus in the face of a growing economy and pointed to the potential for financial imbalances to emerge as a result of the high level of monetary accommodation.
- Jerome H. Powell
- Sarah Bloom Raskin
- Eric S. Rosengren
- Jeremy C. Stein
- Daniel K. Tarullo
- Janet L. Yellen
From the minutes
FOMC minutes
Voting against this action: James Bullard and Esther L. George.
Mr. Bullard dissented because he believed that, in light of recent low readings on inflation, the Committee should signal more strongly its willingness to defend its goal of 2 percent inflation. He pointed out that inflation had trended down since the beginning of 2012 and was now well below target. Going forward, he viewed it as particularly important for the Committee to monitor price developments closely and to adapt its policy in response to incoming economic information.
Ms. George dissented because she viewed the ongoing improvement in labor market conditions and in the outlook as warranting a deliberate statement from the Committee at this meeting that the pace of its asset purchases would be reduced in the very near future. She continued to have concerns about maintaining aggressive monetary stimulus in the face of a growing economy and pointed to the potential for financial imbalances to emerge as a result of the high level of monetary accommodation.
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, July 30-31, 2013. The meeting adjourned at 11:25 a.m. on June 19, 2013.
What changed from the previous meeting’s minutes
- The FOMC's statement changed from "continues to see downside risks" to "sees the downside risks...as having diminished since the fall."
- James Bullard dissented in June, voting against the action, whereas he voted for it in May.
- The June minutes noted market-based inflation expectations decreased over the intermeeting period, a change from May's stable expectations.
- Participants in June discussed providing forward guidance on asset purchases based on numerical economic variables, an option not raised in May.
- The June minutes reported that most participants expected the Chairman to describe a likely conditional path for asset purchases in coming quarters at the press conference.
Summary generated automatically from the two documents.