March 14–15 · Published April 5, 2017
JYJanet L. YellenMarch 14–15, 2017 FOMC Minutes
Our reading
The minutes are consistent with the statement because they detail the FOMC's unanimous agreement to raise the federal funds rate to 3/4 to 1 percent, reflecting the same economic assessments—such as labor market strength, moderate growth, and inflation nearing the 2% target—that the statement outlines, while also noting the dissenting view of one member who preferred to maintain the existing range.
Our reading compares the minutes of the March 14–15 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
- Charles L. Evans
- Stanley Fischer
- Patrick Harker
- Robert S. Kaplan
- Neel Kashkari ↓ dissented
- Mr. Kashkari dissented because he preferred to maintain the existing target range for the federal funds rate at this meeting. In his view, recent data had not pointed to further progress on the Committee's dual objectives and thus had not provided a compelling case to firm monetary policy at this meeting. He preferred to await additional information on the amount of slack remaining in the labor market and increased evidence that inflation would stabilize at the Committee's symmetric 2 percent inflation objective before taking another step to remove monetary policy accommodation. Mr. Kashkari also preferred that when data do support a removal of monetary policy accommodation, the FOMC first publish a detailed plan to normalize its balance sheet before proceeding with further increases in the federal funds rate.
- Jerome H. Powell
- Daniel K. Tarullo
- Janet L. Yellen
From the minutes
FOMC minutes
Voting against this action: Neel Kashkari.
Mr. Kashkari dissented because he preferred to maintain the existing target range for the federal funds rate at this meeting. In his view, recent data had not pointed to further progress on the Committee's dual objectives and thus had not provided a compelling case to firm monetary policy at this meeting. He preferred to await additional information on the amount of slack remaining in the labor market and increased evidence that inflation would stabilize at the Committee's symmetric 2 percent inflation objective before taking another step to remove monetary policy accommodation. Mr. Kashkari also preferred that when data do support a removal of monetary policy accommodation, the FOMC first publish a detailed plan to normalize its balance sheet before proceeding with further increases in the federal funds rate.
To support the Committee's decision to raise the target range for the federal funds rate, the Board of Governors voted unanimously to raise the interest rates on required and excess reserve balances 1/4 percentage point, to 1 percent, effective March 16, 2017. The Board of Governors also voted unanimously to approve a 1/4 percentage point increase in the primary credit rate (discount rate) to 1-1/2 percent, effective March 16, 2017.6
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, May 2-3, 2017. The meeting adjourned at 10:40 a.m. on March 15, 2017.
What changed from the previous meeting’s minutes
- The FOMC raised the target range for the federal funds rate by 25 basis points to 3/4 to 1 percent.
- Neel Kashkari voted against the action, dissenting for the first time, while no dissent occurred previously.
- Headline PCE inflation increased from 1.6 percent in December to 1.9 percent in January.
- The statement added that the inflation goal is symmetric, a new explicit recognition.
- The Board of Governors raised the discount rate by 25 basis points to 1.5 percent.
- The next meeting date changed from March 14-15 to May 2-3, 2017.
Summary generated automatically from the two documents.