September 17–18 · Published October 9, 2024
Jerome H. Powell
September 17–18, 2024 FOMC Minutes
Our reading
The minutes read somewhat more dovish relative to the statement because they reveal a deeper and more nuanced discussion of the downside risks to the labor market and the rationale for the larger rate cut, including concerns that further cooling could transition to a more serious deterioration, whereas the statement presents a more balanced and concise summary of the decision.
Our reading compares the minutes of the September 17–18 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 ↑ dissented
- Governor Bowman preferred at this meeting to lower the target range for the federal funds rate by 25 basis points to 5 to 5-1/4 percent in light of core inflation remaining well above the Committee's objective, a labor market that is near full employment, and solid underlying growth. She also expressed her concern that the Committee's larger policy action could be seen as a premature declaration of victory on the price-stability part of the dual mandate.
- Lisa D. Cook
- Mary C. Daly
- Beth M. Hammack
- Philip N. Jefferson
- Adriana D. Kugler
- Jerome H. Powell
- Christopher J. Waller
- John C. Williams
From the minutes
FOMC minutes
Voting against this action: Michelle W. Bowman.
Governor Bowman preferred at this meeting to lower the target range for the federal funds rate by 25 basis points to 5 to 5-1/4 percent in light of core inflation remaining well above the Committee's objective, a labor market that is near full employment, and solid underlying growth. She also expressed her concern that the Committee's larger policy action could be seen as a premature declaration of victory on the price-stability part of the dual mandate.
Consistent with the Committee's decision to lower the target range for the federal funds rate to 4-3/4 to 5 percent, the Board of Governors of the Federal Reserve System voted unanimously to lower the interest rate paid on reserve balances at 4.9 percent, effective September 19, 2024. The Board of Governors of the Federal Reserve System voted unanimously to approve a 1/2 percentage point decrease in the primary credit rate to 5 percent, effective September 19, 2024.2
It was agreed that the next meeting of the Committee would be held on Wednesday–Thursday, November 6–7, 2024. The meeting adjourned at 10:30 a.m. on September 18, 2024.
What changed from the previous meeting’s minutes
- The target range for the federal funds rate was lowered by 50 basis points to 4-3/4 to 5 percent.
- One member voted against the decision, preferring a 25 basis point cut to 5 to 5-1/4 percent.
- The interest rate paid on reserve balances was lowered to 4.9 percent from 5.4 percent.
- The primary credit rate was decreased by 50 basis points to 5 percent.
- Almost all participants judged the risks to employment and inflation goals as roughly in balance.
- The statement noted the FOMC had gained greater confidence that inflation was moving sustainably toward 2 percent.
Summary generated automatically from the two documents.