FOMC minutes: Patient approach to determining future adjustments to target range remains appropriate
|"In light of global economic and financial developments as well as muted inflation pressures, participants generally agreed that a patient approach to determining future adjustments to the target range for the federal funds rate remained appropriate," the recently published minutes from the Federal Reserve’s April 30/May 1 monetary policy meeting read.
Key takeaways from the press release
- Members agreed to remove references to a slowing in the pace of economic growth and little-changed payroll employment, consistent with stronger incoming information on these indicators.
- Members observed that a patient approach to determining future adjustments to the target range for the federal funds rate would likely remain appropriate for some time.
- If it became appropriate in the future to further lower the IOER rate, the staff noted that the Committee might wish to first consider where to set the ON RRP offer rate relative to the target range for the federal funds rate to mitigate this risk.
- Participants observed that inflation pressures remained muted and that the most recent data on overall inflation, and inflation for items other than food and energy, had come in lower than expected.
- Many participants viewed the recent dip in PCE inflation as likely to be transitory.
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