June 9–10 · Published July 1, 2020
Statement·Presser·Minutes·Policy
Jerome H. Powell
June 9–10, 2020 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents affirm the Federal Reserve's commitment to using its full range of tools to support the economy, maintain the federal funds rate target range at 0 to 1/4 percent, and increase holdings of Treasury securities and agency mortgage-backed securities at least at the current pace, all while acknowledging the ongoing public health crisis and its economic risks.
Our reading compares the minutes of the June 9–10 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
- Richard H. Clarida
- Patrick Harker
- Robert S. Kaplan
- Neel Kashkari
- Loretta J. Mester
- Jerome H. Powell
- Randal K. Quarles
- John C. Williams
From the minutes
FOMC minutes
Voting for this action: Jerome H. Powell, John C. Williams, Michelle W. Bowman, Lael Brainard, Richard H. Clarida, Patrick Harker, Robert S. Kaplan, Neel Kashkari, Loretta J. Mester, and Randal K. Quarles.
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 at 0.10 percent. The Board of Governors also voted unanimously to approve establishment of the primary credit rate at the existing level of 0.25 percent, effective June 11, 2020.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, July 28–29, 2020. The meeting adjourned at 10:05 a.m. on June 10, 2020.
What changed from the previous meeting’s minutes
- Participants noted May labor market report was surprisingly positive, with nearly 20 million jobs lost since February.
- Participants expected personal consumption expenditures to grow strongly in the second half of 2020.
- Participants agreed to increase Treasury and agency MBS holdings at least at the current pace over coming months.
- Directive added allowance for modest deviations from stated purchase amounts for operational reasons.
- Participants noted financial conditions had improved, in part reflecting policy measures.
- Participants reported strains in short-term funding markets had receded and facility borrowing volumes moved lower.
Summary generated automatically from the two documents.