July 25–26 · Published August 16, 2023
Jerome H. Powell
July 25–26, 2023 FOMC Minutes
Our reading
The minutes read somewhat more hawkish relative to the statement because they provide a more detailed and nuanced discussion of the economic outlook, including participants' views on the need for further policy tightening, the risks of inflation remaining elevated, and the potential for additional rate hikes, whereas the statement is a more concise and balanced summary that emphasizes the FOMC's data-dependent approach and the uncertainty surrounding the effects of tighter credit conditions.
Our reading compares the minutes of the July 25–26 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 5.4 percent, effective July 27, 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 5.5 percent, effective July 27, 2023.6
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, September 19–20, 2023. The meeting adjourned at 10:05 a.m. on July 26, 2023.
What changed from the previous meeting’s minutes
- The FOMC raised the federal funds rate target range to 5-1/4 to 5-1/2 percent from 5 to 5-1/4 percent.
- A couple of participants favored leaving the rate unchanged, whereas previously some favored a 25 basis point increase.
- Participants noted monetary policy tightening appeared to be working broadly as intended.
- Participants cited tentative signs inflation pressures could be abating, including lower online prices and smaller price increases by firms.
- Participants discussed risks to some banks from unrealized losses, uninsured deposits, and commercial real estate valuations.
- A number of participants judged risks to the FOMC's goals had become more two-sided.
Summary generated automatically from the two documents.