June 13–14 · Published July 5, 2023
Statement·Presser·Minutes·Policy
Jerome H. Powell
June 13–14, 2023 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the same key decisions and assessments: the Federal Open Market Committee (FOMC) voted unanimously to maintain the federal funds rate at 5 to 5-1/4 percent, acknowledged that economic activity is expanding at a modest pace with robust job gains and low unemployment, noted that inflation remains elevated, and affirmed the commitment to continue reducing securities holdings while monitoring economic conditions to return inflation to the 2 percent objective. The minutes provide a detailed discussion of the factors behind these decisions—such as uncertainty about credit conditions, labor market tightness, and inflation risks—but they do not contradict the statement; instead, they elaborate on the same rationale, including the decision to hold rates steady to assess additional information and the unanimous vote in favor of the action.
Our reading compares the minutes of the June 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
- 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.
Consistent with the Committee's decision to leave the target range for the federal funds rate unchanged, the Board voted unanimously to maintain the interest rate paid on reserve balances at 5.15 percent, effective June 15, 2023. The Board also voted unanimously to approve the establishment of the primary credit rate at the existing level of 5.25 percent.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, July 25–26, 2023. The meeting adjourned at 10:20 a.m. on June 14, 2023.
What changed from the previous meeting’s minutes
- The FOMC voted to maintain the federal funds rate at 5 to 5-1/4 percent, instead of raising it 25 basis points.
- Participants noted banking stresses had receded and conditions were much improved since early March.
- Several participants mentioned credit conditions had not tightened significantly beyond what monetary policy actions would be expected to produce.
- Participants observed consumer spending so far this year had been stronger than expected.
- Some participants favored a 25 basis point increase or could have supported such a proposal.
- A number of participants noted the resolution of the federal debt limit had removed a significant source of uncertainty.
Summary generated automatically from the two documents.