July 31–August 1 · Published August 22, 2018
Statement·Presser·Minutes
Jerome H. Powell
July 31–August 1, 2018 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the same key economic assessments and policy decision: they describe a strengthening labor market, strong economic activity, inflation near 2 percent, a balanced risk outlook, and the decision to maintain the federal funds rate target range at 1-3/4 to 2 percent, while also noting that further gradual rate increases are expected in the future.
Our reading compares the minutes of the July 31–August 1 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
- Esther L. George
- Loretta J. Mester
- Jerome H. Powell
- Randal K. Quarles
- John C. Williams
From the minutes
FOMC minutes
Voting against this action: None.
Ms. George voted as alternate member at this meeting.
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 1.95 percent and voted unanimously to approve establishment of the primary credit rate (discount rate) at the existing level of 2-1/2 percent, effective August 2, 2018.6
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, September 25-26, 2018. The meeting adjourned at 9:45 a.m. on August 1, 2018.
What changed from the previous meeting’s minutes
- Participants noted payrolls grew strongly in June, whereas June minutes cited strong gains averaging over 200,000 per month.
- Unemployment rate described as "stayed low" in August minutes, versus "had declined" in June minutes.
- Household spending and business fixed investment "grown strongly" in August, versus "picked up" and "continued to grow strongly" in June.
- Committee voted to maintain target range at 1-3/4 to 2 percent, not raise it as in June.
- August minutes noted "ongoing trade disagreements" as key risk; June minutes cited "escalation in international trade disputes" as downside risk.
- August minutes reported "only a small change in overall financial conditions" over intermeeting period; June minutes did not mention this.
Summary generated automatically from the two documents.