The minutes of the meeting of the Federal Open Market Committee (FOMC) held on 27 and 28 April were released on the 19th of May. At that meeting, the Committee maintained the stance of monetary policy, with unanimous support among the voting members. The target for the federal funds was kept at a range of 0% – 0.25%, large-scale asset purchases were continued at the rate of approximately $120 billion per month, and the Committee repeated forward guidance for both interest-rate and balance sheet policies.
FOMC participants judged the current stance of monetary policy to be appropriate given that the economy remains far from its employment and price-stability objectives amid still elevated uncertainty. A majority of participants, including the Chair, believe it is not yet time to consider when and how to reduce the pace of asset purchases, but a number (meaning less than a majority) of FOMC participants want to commence such discussions soon if rapid progress toward the Committee’s goals continues.
The discussion evidenced in the minutes does not alter Monolith’s assumption that interest rate lift-off by the FOMC will occur in 2024 and that large-scale asset purchase will continue at about current rates through this year, followed by a gradual taper next year.