December 12–13 · Published January 3, 2024
Jerome H. Powell
December 12–13, 2023 FOMC Minutes
Our reading
The minutes are consistent with the statement because they detail the FOMC's unanimous decision to maintain the federal funds rate at 5-1/4 to 5-1/2 percent, reflecting the same economic assessments—such as slowed growth, moderated but strong job gains, and eased but elevated inflation—and reiterate the commitment to returning inflation to 2 percent, all of which align with the statement's content.
Our reading compares the minutes of the December 12–13 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 December 14, 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 December 14, 2023.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, January 30–31, 2024. The meeting adjourned at 10:15 a.m. on December 13, 2023.
What changed from the previous meeting’s minutes
- Participants now view the policy rate as likely at or near its peak for this tightening cycle.
- Almost all participants' baseline projections imply a lower target range for the federal funds rate by end of 2024.
- Participants saw upside risks to inflation as having diminished.
- Financial conditions had eased over the intermeeting period after a sharp tightening since the summer.
- Several participants suggested beginning to discuss technical factors guiding a decision to slow balance sheet runoff pace.
- Members agreed to add "any" to "additional policy firming" in the postmeeting statement.
Summary generated automatically from the two documents.