January 29–30 · Published February 20, 2019
Statement·Presser·Minutes·Policy
Jerome H. Powell
January 29–30, 2019 FOMC Minutes
Our reading
The minutes read consistent with the statement because both documents reflect the same key decisions and rationale: the FOMC voted to maintain the federal funds rate target range at 2-1/4 to 2-1/2 percent, acknowledged solid economic growth and strong labor market conditions, noted that inflation remains near 2 percent, and emphasized a patient approach to future policy adjustments due to global economic and financial developments and muted inflation pressures.
Our reading compares the minutes of the January 29–30 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Michelle W. Bowman
- Lael Brainard
- James B. Bullard
- Richard H. Clarida
- Charles L. Evans
- Esther L. George
- Jerome H. Powell
- Randal K. Quarles
- Eric S. Rosengren
- John C. Williams
From the minutes
FOMC minutes
Voting for this action: Jerome H. Powell, John C. Williams, Michelle W. Bowman, Lael Brainard, James Bullard, Richard H. Clarida, Charles L. Evans, Esther L. George, Randal K. Quarles, and Eric Rosengren.
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 2.40 percent and voted unanimously to approve establishment of the primary credit rate at the existing level of 3.00 percent, effective January 31, 2019.
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, March 19-20, 2019. The meeting adjourned at 10:30 a.m. on January 30, 2019.
What changed from the previous meeting’s minutes
- The FOMC voted to maintain the federal funds rate at 2-1/4 to 2-1/2 percent, instead of raising it 25 basis points.
- All participants favored holding the rate steady, whereas a few had preferred no change in December.
- Forward guidance replaced "some further gradual increases" with "be patient" on future adjustments.
- The statement removed the characterization of risks to the outlook as "roughly balanced."
- The description of economic activity was changed from "strong" to "solid" in the postmeeting statement.
- The statement added that market-based inflation compensation had moved lower, noting survey-based measures were little changed.
Summary generated automatically from the two documents.