November 1–2 · Published November 23, 2022
Jerome H. Powell
November 1–2, 2022 FOMC Minutes
Our reading
The minutes read more hawkish because they reveal that many participants assessed the ultimate level of the federal funds rate needed to achieve the FOMC's goals as "somewhat higher than they had previously expected," and they emphasized the importance of reaching a sufficiently restrictive stance, whereas the statement only broadly anticipates ongoing increases without specifying that the peak rate may need to be higher.
Our reading compares the minutes of the November 1–2 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 3.9 percent, effective November 3, 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 4 percent, effective November 3, 2022.4
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, December 13–14, 2022. The meeting adjourned at 10:30 a.m. on November 2, 2022.
What changed from the previous meeting’s minutes
- Participants noted longer-term inflation expectations appeared well anchored, a shift from prior emphasis on elevated realized inflation.
- Participants observed recent inflation had been higher and more persistent than anticipated, with no such explicit observation in prior minutes.
- A substantial majority judged a slowing in the pace of rate increases would likely soon be appropriate, replacing prior "several" noting this.
- Participants highlighted risks from nonbank financial institutions amid rapid global tightening, a new specific concern not in prior minutes.
- Participants discussed potential gilt market disruptions in the United Kingdom, a new reference absent from previous minutes.
- Participants noted the full effects of monetary tightening on activity and inflation were still uncertain, with timing effects yet to be realized.
Summary generated automatically from the two documents.