March 15–16, 2022 FOMC Minutes

Our reading

The minutes read more hawkish relative to the statement because they reveal that **many participants would have preferred a larger 50 basis point rate hike** at the meeting, with several indicating that such an increase "could be appropriate at future meetings, particularly if inflation pressures remained elevated or intensified." The statement itself only reflects the consensus decision (a 25 basis point hike) and the general expectation of "ongoing increases," without disclosing the internal debate, the explicit preference for a faster pace of tightening, or the discussion of expediting balance sheet reduction—details that signal a more aggressive stance against inflation than the statement's language conveys.

FOMC minutes

Patrick Harker voted as an alternate member at this meeting.

President Bullard preferred at this meeting to raise the target range for the federal funds rate by 0.5 percentage point to 1/2 to 3/4 percent in light of elevated inflation pressures.

To support the Committee's decision to raise the target range for the federal funds rate, the Board of Governors of the Federal Reserve System voted unanimously to raise the interest rate paid on reserve balances to 0.40 percent, effective March 17, 2022. The Board of Governors of the Federal Reserve System voted unanimously to approve a 1/4 percentage point increase in the primary credit rate to 0.50 percent, effective March 17, 2022.5

It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, May 3–4, 2022.6 The meeting adjourned at 10:30 a.m. on March 16, 2022.