March 19–20 · Published April 10, 2019
Jerome H. Powell
March 19–20, 2019 FOMC Minutes
Our reading
The minutes read consistently with the statement because both documents describe the same economic conditions—a strong labor market with solid average job gains despite a February slowdown, slower first-quarter growth in household spending and business fixed investment, overall inflation declining due to lower energy prices while core inflation remains near 2 percent, and low market-based inflation compensation with little change in survey-based expectations—and both conclude that maintaining the federal funds rate target range at 2-1/4 to 2-1/2 percent is appropriate, with a patient approach to future adjustments.
Our reading compares the minutes of the March 19–20 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 March 21, 2019.
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, April 30-May 1, 2019. The meeting adjourned at 10:00 a.m. on March 20, 2019.
What changed from the previous meeting’s minutes
- Market-based inflation compensation measures rose modestly over the intermeeting period instead of moving lower.
- Participants noted first-quarter economic growth slowed from the fourth quarter's solid rate.
- A majority of participants expected the target range to stay unchanged for the remainder of 2019.
- Financial conditions improved since the start of the year, reversing much of the late-2018 tightening.
- The Chair asked the communications subcommittee to improve SEP federal funds rate projections.
- Statement revised to note overall inflation declined due to lower energy prices.
Summary generated automatically from the two documents.