May 1–2 · Published May 23, 2018
Statement·Presser·Minutes
Jerome H. Powell
May 1–2, 2018 FOMC Minutes
Our reading
The minutes read consistent with the statement because both documents reflect the same key assessments and decisions: the labor market has strengthened, economic activity is growing at a moderate rate, inflation is near the 2 percent objective, and the FOMC voted to maintain the federal funds rate target range at 1-1/2 to 1-3/4 percent, while expecting further gradual increases in the future.
Our reading compares the minutes of the May 1–2 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Thomas I. Barkin
- Raphael W. Bostic
- Lael Brainard
- William C. Dudley
- Loretta J. Mester
- Jerome H. Powell
- Randal K. Quarles
- John C. Williams
From the minutes
FOMC minutes
Voting for this action: Jerome H. Powell, William C. Dudley, Thomas I. Barkin, Raphael W. Bostic, Lael Brainard, Loretta J. Mester, Randal K. Quarles, and John C. Williams.
Voting against this action: None.
Consistent with the Committee's decision to leave the target range for the federal funds rate unchanged, the Board of Governors voted unanimously to leave the interest rates on required and excess reserve balances unchanged at 1-3/4 percent and voted unanimously to approve establishment of the primary credit rate (discount rate) at the existing level of 2-1/4 percent.5
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, June 12-13, 2018. The meeting adjourned at 10:00 a.m. on May 2, 2018.
What changed from the previous meeting’s minutes
- The FOMC voted to maintain the federal funds rate target range at 1-1/2 to 1-3/4 percent, instead of raising it 25 basis points.
- Inflation on a 12-month basis moved close to 2 percent, with PCE inflation reaching 2 percent in March.
- Participants no longer viewed trade policy as a downside risk, but noted a wide range of possible outcomes.
- Financial conditions tightened somewhat over the intermeeting period, remaining accommodative overall.
- Participants discussed revising forward-guidance language, noting the federal funds rate could soon reach its longer-run normal level.
- The next meeting was scheduled for June 12-13, 2018, instead of May 1-2.
Summary generated automatically from the two documents.