April 30–May 1 · Published May 22, 2019
Jerome H. Powell
April 30–May 1, 2019 FOMC Minutes
Our reading
The minutes read consistent with the statement because both documents describe the same economic conditions—strong labor market, solid economic activity, slowed first-quarter household spending and business fixed investment, and inflation running below 2 percent—and both conclude that maintaining the federal funds rate target range at 2-1/4 to 2-1/2 percent with a patient approach to future adjustments is appropriate, reflecting the FOMC's shared assessment and policy decision.
Our reading compares the minutes of the April 30–May 1 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
In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments."
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 maintain the federal funds rate in a target range of 2-1/4 to 2-1/2 percent, the Board of Governors voted unanimously to lower the interest rates on required and excess reserve balances to 2.35 percent, effective May 2, 2019. Setting the interest rate paid on required and excess reserve balances 15 basis points below the top of the target range for the federal funds rate was intended to foster trading in the federal funds market at rates well within the FOMC's target range. The Board of Governors also voted unanimously to approve establishment of the primary credit rate at the existing level of 3.00 percent, effective May 2, 2019.
What changed from the previous meeting’s minutes
- Participants noted first-quarter GDP growth was unexpectedly strong, with some expecting near-term moderation.
- Several participants marked up their real GDP growth projections for this year.
- Both overall and core inflation declined and were running below 2 percent.
- Some participants viewed downside risks to inflation as having increased.
- The FOMC lowered the Treasury principal payment rollover threshold from $30 billion to $15 billion.
- The Board lowered interest rates on required and excess reserve balances to 2.35 percent.
Summary generated automatically from the two documents.