November 2–3 · Published November 24, 2021
Jerome H. Powell
November 2–3, 2021 FOMC Minutes
Our reading
The minutes read more hawkish because they reveal that some participants favored a faster taper and were open to raising rates sooner if inflation persisted, whereas the statement only committed to a fixed, gradual reduction in asset purchases without signaling any urgency on rate hikes.
Our reading compares the minutes of the November 2–3 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 November 4, 2021. The Board also voted unanimously to approve establishment of the primary credit rate at the existing level of 0.25 percent, effective November 4, 2021.
Following these actions, the Chair commented on the critical importance of maintaining the public's trust and confidence in the Federal Reserve as an institution. In this regard, the Chair noted the recent announcement of changes in the rules regarding financial investments and transactions for Federal Reserve officials and indicated that efforts were under way to implement these new rules expeditiously.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, December 14–15, 2021. The meeting adjourned at 10:35 a.m. on November 3, 2021.
What changed from the previous meeting’s minutes
- The FOMC announced a reduction in the pace of net asset purchases, beginning with $10 billion Treasury and $5 billion agency MBS per month.
- The postmeeting statement changed inflation characterization from "largely reflecting transitory factors" to "largely reflecting factors that are expected to be transitory."
- The statement added that supply and demand imbalances related to the pandemic and reopening contributed to sizable price increases in some sectors.
- The statement added that progress on vaccinations and easing of supply constraints are expected to support continued gains and a reduction in inflation.
- The directive specified monthly purchase increases of $70 billion Treasury and $35 billion agency MBS in mid-November, and $60 billion and $30 billion in mid-December.
- The statement added that the Federal Reserve's ongoing purchases and holdings of securities will continue to foster smooth market functioning and accommodative financial conditions.
Summary generated automatically from the two documents.