July 26–27 · Published August 17, 2022
Jerome H. Powell
July 26–27, 2022 FOMC Minutes
Our reading
The minutes read more hawkish because they elaborate on the FOMC's internal deliberations, revealing a stronger consensus on the necessity of moving to a restrictive policy stance, the upside risks to inflation, and the importance of avoiding an unanchoring of inflation expectations—details that are more explicit and forceful than the statement's relatively balanced language.
Our reading compares the minutes of the July 26–27 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Michael S. Barr
- Michelle W. Bowman
- Lael Brainard
- James B. Bullard
- Susan M. Collins
- Lisa D. Cook
- Esther L. George
- Philip N. Jefferson
- 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, Michael S. Barr, Michelle W. Bowman, Lael Brainard, James Bullard, Susan M. Collins, Lisa D. Cook, Esther L. George, Philip N. Jefferson, Loretta J. Mester, and Christopher J. Waller.
Voting against this action: None.
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 2.4 percent, effective July 28, 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 2.5 percent, effective July 28, 2022.6
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, September 20–21, 2022. The meeting adjourned at 10:35 a.m. on July 27, 2022.
What changed from the previous meeting’s minutes
- Federal funds rate target raised from 1.5-1.75% to 2.25-2.5%.
- Treasury and MBS runoff caps increased to $60 and $35 billion monthly starting September.
- Statement added reference to higher food prices and removed COVID lockdown supply chain sentence.
- All participants voted for 75 basis point hike; June had one dissenting vote for 50 basis points.
- Participants noted some supply improvements, including material availability and delivery times.
- Discussion added that slowing pace of rate increases may become appropriate at some point.
Summary generated automatically from the two documents.