- Many policymakers would have preferred to remove easing bias from policy statement.
- Majority of participants said some policy firming would likely become appropriate if inflation were to continue above 2%.
- Participants generally judge continued elevated inflation and uncertainty over Middle East could necessitate keeping current policy stance for longer than anticipated.
- Almost all participants supported maintaining fed funds target range at this meeting.
- Participants generally observed Middle East conflict could have significant implications for balance of risks and appropriate policy path.
- Several participants indicated rate cuts would be warranted later this year in a scenario in which conflict was resolved soon and inflation pressures dissipated.
- Some participants were concerned about scenario in which elevated energy prices and tariffs could result in inflation pressures becoming embedded more broadly.
- Fed staff economic Outlook projections was slightly stronger than for March meeting. Vote at the meeting was eight
The vote at the meeting was 8-4 with 1 voting to cut rates by 25 basis points (Stephen Miran who has resigned from the fed to make room for new Fed Chair Warsh). Three voted to take out the easing bias.
The comment that “many” wanted to remove the easing bias suggested that more than 3 wanted to shift. I would think that the bias might be more unanimous if redone today
FOMC Minutes: Many would have preferred to remover easing bias from policy statement
