September 20–21 · Published October 12, 2022
Jerome H. Powell
September 20–21, 2022 FOMC Minutes
Our reading
The minutes read more hawkish because they reveal that many participants had raised their assessment of the likely path of the federal funds rate, emphasized the need to move to and maintain a more restrictive policy stance, and stressed that the cost of taking too little action to bring down inflation likely outweighed the cost of taking too much action—details that go beyond the statement's more neutral language about "ongoing increases" and "strong commitment" to returning inflation to 2 percent.
Our reading compares the minutes of the September 20–21 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 3.15 percent, effective September 22, 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 3.25 percent, effective September 22, 2022.6
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, November 1–2, 2022. The meeting adjourned at 10:20 a.m. on September 21, 2022.
What changed from the previous meeting’s minutes
- The federal funds rate target range was raised from 2-1/4 to 2-1/2 percent to 3 to 3-1/4 percent.
- The interest rate on reserve balances increased from 2.4 percent to 3.15 percent.
- The primary credit rate rose from 2.5 percent to 3.25 percent.
- Balance sheet runoff reached its maximum planned pace in September, with Treasury and MBS caps at $60 billion and $35 billion per month, respectively.
- Participants noted inflation was declining more slowly than previously anticipated, with recent data coming in above expectations.
- Many participants indicated the cost of taking too little action to reduce inflation likely outweighed the cost of taking too much action.
Summary generated automatically from the two documents.