December 10–11 · Published January 3, 2020
Jerome H. Powell
December 10–11, 2019 FOMC Minutes
Our reading
The minutes are consistent with the statement because they directly mirror the statement's key economic assessments and policy decisions, including the strong labor market, moderate economic growth, weak business investment and exports, below-2% inflation, and the decision to maintain the federal funds rate target range at 1-1/2 to 1-3/4 percent.
Our reading compares the minutes of the December 10–11 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 S. 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 1.55 percent and voted unanimously to approve establishment of the primary credit rate at the existing level of 2.25 percent, effective December 12, 2019.
What changed from the previous meeting’s minutes
- The FOMC voted unanimously to hold rates at 1.5-1.75 percent, with no dissents, after a 25 basis point cut in October.
- The statement removed language about uncertainties and added "global developments and muted inflation pressures" to the monitoring clause.
- Participants noted the unemployment rate at a 50-year low, a detail absent from the previous minutes.
- The directive extended Treasury bill purchases "at least into the second quarter of 2020," shifting from "next year" in October.
- The minutes added discussion of a standing repo facility, administered rates, and Treasury holdings composition for future meetings.
- The SEP projections were included for 2019-2022, replacing the prior meeting's focus on near-term policy calibration.
Summary generated automatically from the two documents.