April 27–28 · Published May 19, 2021
Jerome H. Powell
April 27–28, 2021 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the same core policy stance and economic assessment: the Federal Reserve is committed to using its full range of tools to support the economy, acknowledges the pandemic's ongoing hardship, notes strengthened economic activity and employment amid progress on vaccinations and policy support, recognizes that inflation has risen largely due to transitory factors, and reaffirms the decision to maintain the federal funds rate at 0 to 1/4 percent and continue asset purchases until substantial further progress is made toward maximum employment and price stability goals.
Our reading compares the minutes of the April 27–28 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 April 29, 2021.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, June 15–16, 2021. The meeting adjourned at 10:20 a.m. on April 28, 2021.
What changed from the previous meeting’s minutes
- Unemployment rate fell from 6.2 percent to 6.0 percent.
- Payroll employment gap narrowed from 9.5 million to 8.4 million jobs below pre-pandemic level.
- FOMC statement removed characterization of risks as "considerable".
- Statement changed to note inflation "has risen, largely reflecting transitory factors".
- Participants suggested it might be appropriate to begin discussing a plan for adjusting asset purchase pace at upcoming meetings.
- Financial stability discussion added concerns about hedge fund activities and run-prone investment funds.
Summary generated automatically from the two documents.