January 25–26 · Published February 16, 2022
Statement·Presser·Minutes·Policy
Jerome H. Powell
January 25–26, 2022 FOMC Minutes
Our reading
The minutes read somewhat more hawkish relative to the statement because they provide a more detailed and candid discussion of the FOMC's deliberations, revealing a stronger consensus on the need for faster policy tightening—such as a quicker pace of rate hikes and earlier balance sheet reduction—driven by concerns about upside inflation risks and a very tight labor market, whereas the statement uses more measured language like "expects it will soon be appropriate" without specifying the pace or scope of future actions.
Our reading compares the minutes of the January 25–26 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Michelle W. Bowman
- Lael Brainard
- James B. Bullard
- Esther L. George
- Patrick Harker
- Loretta J. Mester
- Jerome H. Powell
- Christopher J. Waller
- John C. Williams
From the minutes
FOMC minutes
Voting against this action: None.
Patrick Harker voted as an alternate member at this meeting.
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 January 27, 2022. The Board also voted unanimously to approve the establishment of the primary credit rate at the existing level of 0.25 percent.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, March 15–16, 2022. The meeting adjourned at 10:10 a.m. on January 26, 2022.
What changed from the previous meeting’s minutes
- Participants now viewed labor market conditions as at or very close to maximum employment, versus rapid progress in December.
- Most participants favored ending net asset purchases in early March, rather than mid-March as previously planned.
- Participants suggested a faster pace of federal funds rate increases than in the post-2015 period, a new comparison.
- A number of participants said balance sheet reduction would likely be warranted later this year, not mentioned in December.
- Members removed the opening sentence about using full range of tools to support the economy from the statement.
- The statement changed to say it would "soon be appropriate" to raise the target range, replacing the prior condition of maximum employment.
Summary generated automatically from the two documents.