June 15–16 · Published July 7, 2021
Statement·Presser·Minutes·Policy
Jerome H. Powell
June 15–16, 2021 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the Federal Reserve's commitment to using its full range of tools to support the economy, acknowledge the strengthening of economic activity and employment amid vaccination progress, attribute the rise in inflation largely to transitory factors, and reaffirm the decision to maintain the federal funds rate target range 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 June 15–16 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 raise the interest rates on required and excess reserve balances to 0.15 percent. Setting the interest rate paid on required and excess reserve balances 15 basis points above the bottom of the target range for the federal funds rate is intended to foster trading in the federal funds market at rates well within the Federal Open Market Committee's target range and to support the smooth functioning of short-term funding markets. 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 17, 2021.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, July 27–28, 2021. The meeting adjourned at 10:40 a.m. on June 16, 2021.
What changed from the previous meeting’s minutes
- April PCE inflation reached 3.6 percent, exceeding participants' expectations.
- Participants judged inflation risks as tilted to the upside, a shift from balanced risks.
- Several participants discussed reducing agency MBS purchases earlier than Treasury purchases.
- The overnight reverse repurchase agreement offering rate was raised to 0.05 percent.
- Interest rates on required and excess reserve balances were raised to 0.15 percent.
- The FOMC statement removed references to the pandemic causing "tremendous human and economic hardship."
Summary generated automatically from the two documents.