The minutes from the Federal Reserve’s January 29-30 monetary policy meeting have been published with key highlights, via Reuters, found below.
- Participants agreed that it was important to be flexible in managing the process of balance sheet normalization.
- It would be appropriate to adjust the details of balance sheet normalization plans in light of economic and financial developments if necessary to achieve the Committee’s macroeconomic objectives.
- The U.S. economic forecast prepared by the staff for the January FOMC meeting was revised down a little, on balance, primarily reflecting somewhat lower projected paths for domestic equity prices and foreign economic growth.
- Members noted tightening financial conditions and uncertainties surrounding the evolution of U.S. and foreign government policies in January meeting.
- Participants said softness in core and total inflation a reason for patient approach to policy.
- Policymakers resumed discussion of framework for managing balance sheet.
- Policymakers favored patient approach to observe effects of past rate hikes.
- Several participants said rate hikes might prove necessary only if inflation outcomes higher than baseline outlook.
- Many participants not yet clear what adjustment to rates might be necessary later this year.
- Policymakers said a framework that controlled the policy rate through active management of the supply of reserves would have disadvantages.
About the FOMC minutes
FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.
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