May 2–3 · Published May 24, 2023
Jerome H. Powell
May 2–3, 2023 FOMC Minutes
Our reading
The minutes are consistent with the statement because the minutes reflect the same key points, such as the modest economic expansion, robust job gains, low unemployment, and elevated inflation, while also detailing the unanimous decision to raise the federal funds rate to 5 to 5-1/4 percent and the commitment to continue reducing securities holdings, all of which align precisely with the actions and language outlined in the statement.
Our reading compares the minutes of the May 2–3 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 5.15 percent, effective May 4, 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 5.25 percent, effective May 4, 2023.4
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, June 13–14, 2023. The meeting adjourned at 10:00 a.m. on May 3, 2023.
What changed from the previous meeting’s minutes
- Participants noted credit card delinquencies rising for lower-income households; current minutes omit this.
- Current minutes report core nonhousing services inflation showed few signs of slowing; previous cited slower-than-expected disinflation.
- Current minutes note prime-age labor force participation returned to pre-pandemic level; previous mentioned overall participation increase.
- Current minutes cite debt limit as a risk; previous minutes did not mention it.
- Current minutes report some participants saw banking stress effects on credit availability as modest; previous noted nonbank contacts saw no significant changes.
- Current minutes mention concerns about CRE office vacancy rates as a bank vulnerability; previous did not.
Summary generated automatically from the two documents.