January 28–29 · Published February 19, 2025
Statement·Presser·Minutes·Policy
Jerome H. Powell
January 28–29, 2025 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the same key assessments and decisions: economic activity is expanding at a solid pace, the unemployment rate is stable at a low level, labor market conditions are solid, inflation remains somewhat elevated, the risks to the dual mandate are roughly in balance, and the FOMC decided to maintain the federal funds rate target range at 4-1/4 to 4-1/2 percent while continuing to reduce its securities holdings.
Our reading compares the minutes of the January 28–29 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
- Susan M. Collins
- Lisa D. Cook
- Austan D. Goolsbee
- Philip N. Jefferson
- Adriana D. Kugler
- Alberto G. Musalem
- Jerome H. Powell
- Jeffrey R. Schmid
- 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, Susan M. Collins, Lisa D. Cook, Austan D. Goolsbee, Philip N. Jefferson, Adriana D. Kugler, Alberto G. Musalem, Jeffrey R. Schmid, 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 4.4 percent, effective January 30, 2025. 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 4.5 percent, effective January 30, 2025.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, March 18–19, 2025. The meeting adjourned at 10:10 a.m. on January 29, 2025.
What changed from the previous meeting’s minutes
- The FOMC voted unanimously to maintain the federal funds rate at 4-1/4 to 4-1/2 percent, after lowering it 25 basis points in December.
- Participants noted inflation progress had slowed over the past year, with 12-month PCE at 2.6 percent and core at 2.8 percent.
- A couple of participants judged risks to price stability mandate now greater than risks to maximum employment mandate.
- Participants discussed pausing or slowing balance sheet runoff due to potential debt ceiling-related swings in reserves.
- Many participants noted longer-term Treasury yields and mortgage rates had risen, tightening financial conditions over recent months.
- Participants discussed financial stability vulnerabilities including bank unrealized losses, nonbank leverage, and Treasury market dealer capacity.
Summary generated automatically from the two documents.