April 30–May 1 · Published May 22, 2024
Jerome H. Powell
April 30–May 1, 2024 FOMC Minutes
Our reading
The minutes read consistent with the statement because both documents affirm the Federal Open Market Committee's decision to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent, acknowledge the lack of further progress toward the 2 percent inflation objective, and outline the specific plan to slow the pace of balance sheet runoff starting in June by reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion, while keeping the agency debt and MBS cap at $35 billion and reinvesting excess principal payments into Treasury securities.
Our reading compares the minutes of the April 30–May 1 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Thomas I. Barkin
- Michael S. Barr
- Raphael W. Bostic
- Michelle W. Bowman
- Lisa D. Cook
- Mary C. Daly
- Philip N. Jefferson
- Adriana D. Kugler
- Loretta J. Mester
- Jerome H. Powell
- Christopher J. Waller
- John C. Williams
From the minutes
FOMC minutes
Voting for this action: Jerome H. Powell, John C. Williams, Thomas I. Barkin, Michael S. Barr, Raphael W. Bostic, Michelle W. Bowman, Lisa D. Cook, Mary C. Daly, Philip N. Jefferson, Adriana D. Kugler, Loretta J. Mester, 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 May 2, 2024. 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 May 2, 2024.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, June 11–12, 2024. The meeting adjourned at 10:05 a.m. on May 1, 2024.
What changed from the previous meeting’s minutes
- Participants noted a lack of further progress toward the 2 percent inflation objective in recent months, a change from March's firmer readings.
- The FOMC decided to slow balance sheet runoff starting in June, reducing the Treasury redemption cap from $60 billion to $25 billion.
- Principal payments on agency debt and MBS above the $35 billion cap will be reinvested into Treasury securities beginning in June.
- Participants assessed it would take longer than previously anticipated to gain greater confidence that inflation is moving sustainably toward 2 percent.
- Various participants mentioned a willingness to tighten policy further should inflation risks materialize, a new addition to the policy outlook.
- Participants discussed financial stability vulnerabilities, including private credit market growth and Treasury market leverage, not covered in March.
Summary generated automatically from the two documents.