September 25–26 · Published October 17, 2018
Jerome H. Powell
September 25–26, 2018 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents describe the same economic conditions—strong labor markets, strong economic activity, inflation near 2 percent, and roughly balanced risks—and both conclude that raising the target range for the federal funds rate to 2 to 2-1/4 percent is the appropriate policy action.
Our reading compares the minutes of the September 25–26 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
- Richard H. Clarida
- Esther L. George
- Loretta J. Mester
- Jerome H. Powell
- Randal K. Quarles
- John C. Williams
From the minutes
FOMC minutes
Ms. George voted as alternate member at this meeting.
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 to 2.20 percent, effective September 27, 2018. The Board of Governors also voted unanimously to approve a 1/4 percentage point increase in the primary credit rate (discount rate) to 2.75 percent, effective September 27, 2018.5
Following the vote, Chairman Powell noted that he had asked Governor Clarida to serve as chair of a subcommittee on communications issues. The other members of the subcommittee will include Governor Brainard, President Kaplan, and President Rosengren. The role of the subcommittee will be to help prioritize and frame communications issues for the Committee.
It was agreed that the next meeting of the Committee would be held on Wednesday-Thursday, November 7-8, 2018. The meeting adjourned at 10:00 a.m. on September 26, 2018.
What changed from the previous meeting’s minutes
- The FOMC raised the target range for the federal funds rate to 2 to 2-1/4 percent from 1-3/4 to 2 percent.
- The postmeeting statement removed the language that "the stance of monetary policy remains accommodative."
- The FOMC increased the monthly caps on Treasury and agency MBS principal rollovers to $30 billion and $20 billion, respectively.
- Richard H. Clarida joined the voting members, replacing an unnamed participant from the previous meeting.
- The Board of Governors raised the interest rates on required and excess reserve balances to 2.20 percent and the primary credit rate to 2.75 percent.
- Chairman Powell appointed Governor Clarida to chair a new subcommittee on communications issues.
Summary generated automatically from the two documents.