June 17–18 · Published July 9, 2014
Statement·Presser·Minutes·Policy
JYJanet L. YellenJune 17–18, 2014 FOMC Minutes
Our reading
The minutes are consistent with the statement because they reflect the same key economic assessments and policy decisions, including the rebound in economic activity, gradual labor market improvement, moderate household spending, slow housing recovery, inflation below target, and the decision to reduce asset purchases by $10 billion per month starting in July, while maintaining the federal funds rate target range and forward guidance.
Our reading compares the minutes of the June 17–18 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Lael Brainard
- William C. Dudley
- Stanley Fischer
- Richard W. Fisher
- Narayana Kocherlakota
- Loretta J. Mester
- Charles I. Plosser
- Jerome H. Powell
- Daniel K. Tarullo
- Janet L. Yellen
From the minutes
FOMC minutes
When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run."
Voting for this action: Janet L. Yellen, William C. Dudley, Lael Brainard, Stanley Fischer, Richard W. Fisher, Narayana Kocherlakota, Loretta J. Mester, Charles I. Plosser, Jerome H. Powell, and Daniel K. Tarullo.
Voting against this action: None.
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, July 29-30. The meeting adjourned at 11:10 a.m. on June 18, 2014.
What changed from the previous meeting’s minutes
- Asset purchases reduced to $15 billion MBS and $20 billion Treasuries per month from $20 billion and $25 billion.
- Participants agreed asset purchases likely completed with a final $15 billion reduction after October meeting.
- ECB and Bank of Japan actions noted as improving foreign economic outlooks.
- Iraq and Ukraine cited as new downside risks to global activity and oil prices.
- Several participants suggested allowing unemployment below longer-run normal to lift inflation.
- Voting members changed: Brainard, Fischer, and Mester replaced Pianalto and Stein.
Summary generated automatically from the two documents.