May 3–4 · Published May 25, 2022
Jerome H. Powell
May 3–4, 2022 FOMC Minutes
Our reading
The minutes read somewhat more hawkish relative to the statement because they explicitly detail participants' discussions about the need to "expeditiously" move policy to a neutral stance, the likelihood of 50 basis point increases at the "next couple of meetings," and the potential that a "restrictive stance" may become appropriate—specific forward guidance that goes beyond the statement's more general language about "ongoing increases" and being "prepared to adjust" policy.
Our reading compares the minutes of the May 3–4 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 for this action: Jerome H. Powell, John C. Williams, Michelle W. Bowman, Lael Brainard, James Bullard, Esther L. George, Patrick Harker, Loretta J. Mester, and Christopher J. Waller.
Patrick Harker voted as an alternate member at this meeting.
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 0.90 percent, effective May 5, 2022. The Board of Governors of the Federal Reserve System voted unanimously to approve a 1/2 percentage point increase in the primary credit rate to 1 percent, effective May 5, 2022.5
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, June 14–15, 2022. The meeting adjourned at 10:15 a.m. on May 4, 2022.
What changed from the previous meeting’s minutes
- Federal funds rate target raised 50 basis points to 3/4 to 1 percent, up from 25 basis points to 1/4 to 1/2 percent.
- Balance sheet reduction begins June 1 with caps of $30 billion Treasury and $17.5 billion MBS monthly.
- Bullard voted for the action, reversing his March dissent for a 50 basis point increase.
- Statement added COVID-related lockdowns in China exacerbating supply chain disruptions.
- Participants agreed 50 basis point increases likely appropriate at next couple of meetings.
- Unemployment rate described as near-50-year low, replacing post-pandemic low.
Summary generated automatically from the two documents.