March 21–22 · Published April 12, 2023
Jerome H. Powell
March 21–22, 2023 FOMC Minutes
Our reading
The minutes are consistent with the statement because they detail the FOMC's unanimous agreement to raise the target range for the federal funds rate by 25 basis points to 4-3/4 to 5 percent, mirroring the statement's announcement of this decision, and they elaborate on the same rationale—including robust job gains, low unemployment, elevated inflation, and the uncertain but likely tightening of credit conditions due to banking-sector developments—that underpins the statement's language.
Our reading compares the minutes of the March 21–22 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
- 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, 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 4.9 percent, effective March 23, 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 5 percent, effective March 23, 2023.6
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, May 2–3, 2023. The meeting adjourned at 10:15 a.m. on March 22, 2023.
What changed from the previous meeting’s minutes
- The target federal funds rate was raised from 4.5-4.75 percent to 4.75-5 percent.
- Several participants considered holding the rate steady, a new deliberation not present in the previous minutes.
- Some participants noted they would have favored a 50 basis point increase absent banking-sector developments.
- The minutes shifted from "ongoing increases" to "some additional policy firming may be appropriate."
- The U.S. banking system was described as "sound and resilient" after recent banking-sector stress.
- Participants added that tighter credit conditions from banking developments could weigh on economic activity and inflation.
Summary generated automatically from the two documents.