March 18–19 · Published April 9, 2025
Jerome H. Powell
March 18–19, 2025 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents report that the FOMC voted to maintain the federal funds rate at 4-1/4 to 4-1/2 percent.
Our reading compares the minutes of the March 18–19 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 • dissented
- Governor Waller preferred no change in the federal funds target range and continuing the pace of decline in securities holdings in place at the time of the vote. This view was based on reserve balances being over $3 trillion as well as no evidence from money market indicators or his outreach conversations that the banking system is getting close to an ample level of reserves. In addition, rather than changing the pace of balance sheet reduction, he thought the Federal Reserve should rely on its existing tools and develop a plan for how to respond to short-run strains if they emerge.
- John C. Williams
From the minutes
FOMC minutes
Voting against this action: Christopher J. Waller.
Governor Waller preferred no change in the federal funds target range and continuing the pace of decline in securities holdings in place at the time of the vote. This view was based on reserve balances being over $3 trillion as well as no evidence from money market indicators or his outreach conversations that the banking system is getting close to an ample level of reserves. In addition, rather than changing the pace of balance sheet reduction, he thought the Federal Reserve should rely on its existing tools and develop a plan for how to respond to short-run strains if they emerge.
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 March 20, 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 March 20, 2025.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, May 6–7, 2025. The meeting adjourned at 10:25 a.m. on March 19, 2025.
What changed from the previous meeting’s minutes
- Monthly Treasury redemption cap reduced from $25 billion to $5 billion beginning April 1.
- Christopher J. Waller voted against the decision, preferring no change in runoff pace.
- Risks to inflation tilted to upside and employment to downside, replacing roughly balanced risks.
- January and February inflation data came in higher than participants expected.
- Federal government job and funding cuts began affecting employment at contractors and nonprofits.
- Financial conditions tightened since January due to lower equity prices and higher corporate risk spreads.
Summary generated automatically from the two documents.