September 19–20 · Published October 11, 2023
Jerome H. Powell
September 19–20, 2023 FOMC Minutes
Our reading
The minutes read somewhat more hawkish relative to the statement because they reveal that a majority of participants judged that one more increase in the target federal funds rate at a future meeting would likely be appropriate, whereas the statement only mentions maintaining the current rate and assessing additional information without explicitly signaling a bias toward further tightening.
Our reading compares the minutes of the September 19–20 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
- Adriana D. Kugler
- 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, Adriana D. Kugler, 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 of Governors of the Federal Reserve System voted unanimously to maintain the interest rate paid on reserve balances at 5.4 percent, effective September 21, 2023. The Board of Governors of the Federal Reserve System voted unanimously to approve the establishment of the primary credit rate at the existing level of 5.5 percent, effective September 21, 2023.
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, October 31-November 1, 2023. The meeting adjourned at 10:10 a.m. on September 20, 2023.
What changed from the previous meeting’s minutes
- The FOMC voted to maintain the federal funds rate at 5-1/4 to 5-1/2 percent, instead of raising it.
- The postmeeting statement changed economic activity description from "moderate" to "solid" pace.
- A majority of participants judged one more rate increase at a future meeting would likely be appropriate.
- Participants noted the autoworkers' strike as a new source of uncertainty affecting inflation and activity.
- Rising energy prices were cited by a majority as an upside risk to inflation.
- Adriana D. Kugler joined the voting members, replacing no one in the prior vote.
Summary generated automatically from the two documents.