December 13–14 · Published January 4, 2023
Jerome H. Powell
December 13–14, 2022 FOMC Minutes
Our reading
The minutes read somewhat more hawkish relative to the statement because they elaborate on the FOMC's internal deliberations, revealing a stronger consensus on the need for a sustained restrictive policy stance, with all participants agreeing that no rate cuts would be appropriate in 2023 and several emphasizing the risk of prematurely loosening policy, whereas the statement's language is more neutral and forward-looking, focusing on the decision to raise rates and the factors to consider in future adjustments.
Our reading compares the minutes of the December 13–14 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 4.4 percent, effective December 15, 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 4.5 percent, effective December 15, 2022.5
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, January 31–February 1, 2023. The meeting adjourned at 10:35 a.m. on December 14, 2022.
What changed from the previous meeting’s minutes
- Federal funds rate target raised 50 basis points to 4-1/4 to 4-1/2 percent, down from 75 basis points.
- All participants raised their assessment of the appropriate federal funds rate path since September.
- No participants anticipated reducing the federal funds rate target in 2023.
- Financial conditions had eased since November, with longer-term yields coming down.
- October and November inflation data showed welcome reductions in monthly price increases.
- Participants noted tentative signs of labor market imbalances improving, including declines in job openings.
Summary generated automatically from the two documents.