January 26–27 · Published February 17, 2021
Statement·Presser·Minutes·Policy
Jerome H. Powell
January 26–27, 2021 FOMC Minutes
Our reading
The minutes are consistent with the statement because they reflect the same key points: the commitment to using all tools to support the economy, the acknowledgment of the pandemic's ongoing hardship and risks, the moderation in recovery with weakness in affected sectors, the goal of achieving maximum employment and 2% inflation (including aiming for inflation moderately above 2% for some time), the decision to keep the federal funds rate at 0-1/4% and continue asset purchases at $80 billion and $40 billion per month until substantial progress, and the readiness to adjust policy based on incoming information—all of which are directly echoed in the minutes' discussion of economic conditions, policy outlook, and the unanimous vote.
Our reading compares the minutes of the January 26–27 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Thomas I. Barkin
- Raphael W. Bostic
- Michelle W. Bowman
- Lael Brainard
- Richard H. Clarida
- Mary C. Daly
- Charles L. Evans
- Jerome H. Powell
- Randal K. Quarles
- Christopher J. Waller
- John C. Williams
From the minutes
FOMC minutes
Voting for this action: Jerome H. Powell, John C. Williams, Thomas I. Barkin, Raphael W. Bostic, Michelle W. Bowman, Lael Brainard, Richard H. Clarida, Mary C. Daly, Charles L. Evans, Randal K. Quarles, and Christopher J. Waller.
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 January 28, 2021.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, March 16–17, 2021. The meeting adjourned at 10:25 a.m. on January 27, 2021.
What changed from the previous meeting’s minutes
- Participants noted payroll employment fell in December, a change from continued recovery in prior minutes.
- Members removed the statement that risks to the economic outlook over the medium term were considerable.
- Participants added discussion of financial stability vulnerabilities, including run-prone investment funds and Treasury market fragilities.
- Participants noted 12-month PCE inflation was poised to come in well below 2 percent in December.
- Participants flagged potential one-time price increases from supply chain constraints and a return to normal activity.
- Voting members changed, with Thomas Barkin, Raphael Bostic, Mary Daly, and Christopher Waller replacing Patrick Harker, Robert Kaplan, Neel Kashkari, and Loretta Mester.
Summary generated automatically from the two documents.