September 21–22 · Published October 13, 2021
Jerome H. Powell
September 21–22, 2021 FOMC Minutes
Our reading
The minutes read more hawkish relative to the statement because they reveal the internal debate and the specific conditions under which tapering would occur, including the illustrative path for reducing asset purchases and the possibility of a more rapid moderation, whereas the statement only vaguely signals that a moderation "may soon be warranted" without detailing the timeline or the internal disagreements about the pace.
Our reading compares the minutes of the September 21–22 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 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 maintain the interest rate paid on reserve balances at 0.15 percent, effective September 23, 2021. The Board also voted unanimously to approve establishment of the primary credit rate at the existing level of 0.25 percent, effective September 23, 2021.
Following the FOMC policy vote, the Chair emphasized that maintaining the public trust is absolutely essential for the work of the Federal Reserve. In light of recent questions regarding the financial transactions of senior officials, the Chair indicated that the staff would conduct a thorough review of the Federal Reserve's current rules and regulations regarding the financial holdings and practices of Federal Reserve officials. This deliberate and thoughtful review will focus on strengthening Federal Reserve rules and standards in ways that will help guard against even the appearance of conflicts of interest or any other improprieties.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, November 2–3, 2021. The meeting adjourned at 10:45 a.m. on September 22, 2021.
What changed from the previous meeting’s minutes
- Participants judged "substantial further progress" toward price stability had been met or likely soon, versus not yet met in July.
- Participants discussed an illustrative tapering path of $10 billion Treasury and $5 billion MBS monthly reductions, absent in July
- Several participants preferred a more rapid moderation of asset purchases than the illustrative path
- A number of participants raised possibility of raising federal funds rate by end of next year, not mentioned in July
- Members changed statement language from inflation "has risen" to "is elevated" and added tapering "may soon be warranted"
- ON RRP per-counterparty limit increased from $80 billion to $160 billion per day
Summary generated automatically from the two documents.