October 29–30 · Published November 20, 2013
Statement·Presser·Minutes
BBBen S. BernankeOctober 29–30, 2013 FOMC Minutes
Our reading
The minutes read more hawkish relative to the statement because they reveal that participants generally expected the data to warrant trimming the pace of asset purchases in coming months, and they discussed scenarios for winding down the program before an unambiguous improvement in the outlook, whereas the statement only emphasized awaiting more evidence before adjusting the pace.
Our reading compares the minutes of the October 29–30 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
- William C. Dudley
- Charles L. Evans
- Esther L. George ↑ dissented
- She did not see the continued aggressive easing of monetary policy as warranted in the face of both actual and forecasted improvements in the economy. In her view, the cumulative progress in labor markets justified taking steps toward slowing the pace of the Committee's asset purchases. Moreover, market expectations for the size of the purchase program had continued to escalate despite that progress, increasing her concerns about communications challenges and the potential costs associated with asset purchases.
- Jerome H. Powell
- Eric S. Rosengren
- Jeremy C. Stein
- Daniel K. Tarullo
- Janet L. Yellen
From the minutes
FOMC minutes
Voting for this action: Ben Bernanke, William C. Dudley, James Bullard, Charles L. Evans, Jerome H. Powell, Eric Rosengren, Jeremy C. Stein, Daniel K. Tarullo, and Janet L. Yellen.
Voting against this action: Esther L. George.
Ms. George dissented because she did not see the continued aggressive easing of monetary policy as warranted in the face of both actual and forecasted improvements in the economy. In her view, the cumulative progress in labor markets justified taking steps toward slowing the pace of the Committee's asset purchases. Moreover, market expectations for the size of the purchase program had continued to escalate despite that progress, increasing her concerns about communications challenges and the potential costs associated with asset purchases.
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, December 17-18, 2013. The meeting adjourned at 12:05 p.m. on October 30, 2013.
What changed from the previous meeting’s minutes
- The FOMC decided to maintain asset purchases at $85 billion per month, same as September.
- All members but one again judged it appropriate to await more evidence before adjusting purchases.
- One member, George, dissented again, citing cumulative economic improvement warranting reduced purchases.
- The FOMC discussed adding forward guidance about gradual headwinds but did not include it.
- The minutes noted the government shutdown made economic conditions harder to assess.
- The FOMC considered trimming Treasury purchases faster than MBS, with some preferring equal cuts.
Summary generated automatically from the two documents.