January 31–February 1 · Published February 22, 2023
Statement·Presser·Minutes·Policy
Jerome H. Powell
January 31–February 1, 2023 FOMC Minutes
Our reading
The minutes read consistent with the statement because both documents reflect the FOMC's decision to raise the federal funds rate by 25 basis points to 4-1/2 to 4-3/4 percent, acknowledge that inflation remains elevated while easing somewhat, and emphasize the commitment to ongoing rate increases and balance sheet reduction to achieve the 2 percent inflation goal, with the minutes providing detailed discussion and rationale that align with the statement's concise policy actions and economic assessment.
Our reading compares the minutes of the January 31–February 1 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
- Lisa D. Cook
- Austan D. Goolsbee
- Patrick Harker
- Philip N. Jefferson
- Neel Kashkari
- Lorie K. Logan
- 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, Lisa D. Cook, Austan D. Goolsbee, Patrick Harker, Philip N. Jefferson, Neel Kashkari, Lorie K. Logan, 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 4.65 percent, effective February 2, 2023. The Board of Governors of the Federal Reserve System voted unanimously to approve a 1/4 percentage point increase in the primary credit rate to 4.75 percent, effective February 2, 2023.5
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, March 21–22, 2023. The meeting adjourned at 10:20 a.m. on February 1, 2023.
What changed from the previous meeting’s minutes
- The federal funds rate target range was raised by 25 basis points to 4-1/2 to 4-3/4 percent, down from a 50 basis point increase.
- A few participants favored or could have supported a 50 basis point increase, a dissent not present in the previous minutes.
- The statement changed "inflation remains elevated" to "inflation has eased somewhat but remains elevated."
- The minutes added discussion of financial stability risks, including CRE valuations, nonbank runs, and bank securities losses.
- The minutes added a reference to risks from a potential failure to raise the federal debt limit.
- The minutes noted that financial conditions had eased over recent months, potentially necessitating a tightening stance.
Summary generated automatically from the two documents.