U.S. Federal Open Market Committee (FOMC) Meeting Minutes – January 2023
Originally Posted: February 22, 2023, 2 PM ET
The Federal Open Market Committee’s meeting minutes from the January 2023 Fed meeting are out. It doesn’t matter if you’re trading penny stocks or are trying to make money trading Tesla ( NASDAQ: TSLA ) or meme stocks like AMC Entertainment ( NYSE: AMC ), the Fed minutes have a history of sparking volatility in the stock market. Today we get a glimpse of what, if anything else, was said at the first FOMC meeting of 2023. In light of recent inflation data like the January CPI inflation report and PPI report , chances are, these minutes may or may not carry as much weight.
Meanwhile, the FOMC and other global central banks have continued setting expectations for 2023 inflation, rate hikes, and any chance of a “soft landing” that was originally hoped for. As we digest these latest January Fed meeting minutes, let’s also recap the meeting itself.
January 2023 Fed Meeting Recap
When it came to the 2023 January FOMC meeting and it was all about hawkish vs dovish tone, rate of inflation, number of hikes, and the size of those rate hikes. The initial 25 bps hike was expected but recent comments from Fed members have shifted sentiment and focus on the potential of a 50 bps hike at the next Fed meeting. While the next rate hike decision is yet to be seen, we could get some clues from the January 2023 FOMC meeting.
Here are some of the top takeaways from that meeting:
- The Committee decided to raise the target range for the federal funds rate to 4-1/2 to 4-3/4 percent, 25 basis points.
- The Committee reaffirms its judgment that inflation at the rate of 2 percent, as measured by the annual change in the price index for personal consumption expenditures, is most consistent over the longer run with the Federal Reserve’s statutory mandate.
- The longer-term inflation expectations that are well anchored at 2 percent foster price stability and moderate long-term interest rates and enhance the Committee’s ability to promote maximum employment in the face of significant economic disturbances.
- Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.
- The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.
- The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans.
- Conduct overnight reverse repurchase agreement operations at an offering rate of 4.55 percent and with a per-counterparty limit of $160 billion per day; the per counterparty limit can be temporarily increased at the discretion of the Chair.
- Roll over at auction the amount of principal payments from the Federal Reserve’s holdings of Treasury securities maturing in each calendar month that exceeds a cap of $60 billion per month. Redeem Treasury coupon securities up to this monthly cap and Treasury bills to the extent that coupon principal payments are less than the monthly cap.
- Reinvest into agency mortgage-backed securities (MBS) the amount of principal payments from the Federal Reserve’s holdings of agency debt and agency MBS received in each calendar month that exceeds a cap of $35 billion per month.
- Engage in dollar roll and coupon swap transactions as necessary to facilitate settlement of the Federal Reserve’s agency MBS transactions.
Frequently Asked Questions (FAQ) About The Federal Open Market Committee Meeting Minutes
When Are The Fed Minutes Released?
Fed Meeting Minutes are released three weeks after each FOMC meeting.
What Are The Federal Open Market Committee Meeting Minutes?
According to the Federal Open Market Committee, the Fed meeting minutes “provide a timely summary of the discussion during the meeting and the decisions taken at the meeting. The minutes describe the views expressed by policymakers and explain the reasons for the Committee’s decisions. The minutes can help the public interpret economic and financial developments and understand the Committee’s decisions. As an official record of the meeting, the minutes identify all attendees, and provide a complete record of policy actions taken, including the votes by individual members on each policy action.”
FOMC Meeting Minutes for January 2023
This is a developing story. Data from the January FOMC meeting minutes will be updated as new information is released.