July 27–28 · Published August 18, 2021
Jerome H. Powell
July 27–28, 2021 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reaffirm the Federal Reserve's commitment to using its full range of tools to support the economy, acknowledge progress toward maximum employment and price stability goals, and agree to maintain the accommodative stance of monetary policy, including keeping the federal funds rate at 0 to 1/4 percent and continuing asset purchases, until substantial further progress is achieved.
Our reading compares the minutes of the July 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 voted unanimously to establish the interest rate paid on reserve balances at 0.15 percent, effective July 29, 2021.5 The Board also voted unanimously to approve establishment of the primary credit rate at the existing level of 0.25 percent, effective July 29, 2021.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, September 21–22, 2021. The meeting adjourned at 10:35 a.m. on July 28, 2021.
What changed from the previous meeting’s minutes
- Participants now cited Delta variant and slowing vaccination progress as downside risks to economic outlook.
- Most participants judged "substantial further progress" for asset purchases could be reached this year.
- Some participants suggested preparing to reduce asset purchases relatively soon due to persistent inflation risk.
- Statement removed "weak" description of pandemic-affected sectors, replaced with "have not fully recovered."
- Statement removed "significantly" from dependence of economy on virus course.
- Statement added that economy has made progress toward goals since December asset purchase guidance.
Summary generated automatically from the two documents.