June 14–15 · Published July 6, 2022
Statement·Presser·Minutes·Policy
Jerome H. Powell
June 14–15, 2022 FOMC Minutes
Our reading
The minutes read more hawkish because they reveal deeper concerns among participants about inflation persistence, a noted deterioration in the near-term inflation outlook since the May meeting, and explicit discussions about the need to move to a restrictive policy stance—with many participants acknowledging the possibility that an even more restrictive stance could be required if elevated inflation pressures persist.
Our reading compares the minutes of the June 14–15 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
- Lisa D. Cook
- Esther L. George • dissented
- Patrick Harker
- Philip N. Jefferson
- Loretta J. Mester
- Jerome H. Powell
- Christopher J. Waller
- John C. Williams
From the minutes
FOMC minutes
Patrick Harker voted as an alternate member at this meeting.
President George dissented because she judged that a large increase in the target range for the federal funds rate would add to uncertainty about policy concurrent with the beginning of balance sheet runoff in ways that could unsettle households and businesses and could also adversely affect the ability of small banks to meet the credit needs of their communities.
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 1.65 percent, effective June 16, 2022. The Board of Governors of the Federal Reserve System voted unanimously to approve a 3/4 percentage point increase in the primary credit rate to 1.75 percent, effective June 16, 2022.5
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, July 26–27, 2022. The meeting adjourned at 10:45 a.m. on June 15, 2022.
What changed from the previous meeting’s minutes
- The federal funds rate target range was raised 75 basis points to 1-1/2 to 1-3/4 percent, up from 50 basis points to 3/4 to 1 percent.
- One participant dissented, favoring a 50 basis point increase, whereas the previous vote was unanimous.
- The statement omitted the sentence conveying high uncertainty about the invasion's implications for the U.S. economy.
- The statement removed language expecting inflation to return to 2 percent and a strong labor market, adding a strong commitment to returning inflation to 2 percent.
- The unemployment rate was projected to rise gradually to 4.1 percent in 2024, a new median projection.
- The next meeting was scheduled for July 26-27, 2022, instead of June 14-15.
Summary generated automatically from the two documents.