Federal Reserve — FOMC Statement (USA, 2022)

Minutes of the Federal Open Market Committee January 25 26, 2022 A joint meeting of the Federal Open Market Committee and the Board of Governors of the Federal Reserve Sys- tem was held by videoconference on Tuesday, Janu- ary 25, 2022, at 9:00 a.m. and continued on Wednesday, January 26, 2022, at 9:00 a.m.1 Attendance Jerome H. Powell, Chair John C. Williams, Vice Chair Michelle W. Bowman Lael Brainard James Bullard Esther L. George Loretta J. Mester Christopher J. Waller Meredith Black, Charles L. Evans, Patrick Harker, Naureen Hassan, and Neel Kashkari, Alternate Members of the Committee Thomas I. Barkin, Raphael W. Bostic, and Mary C. Daly, Presidents of the Federal Reserve Banks of Richmond, Atlanta, and San Francisco, respectively Kenneth C. Montgomery, Interim President of the Federal Reserve Bank of Boston James A. Clouse, Secretary Matthew M. Luecke, Deputy Secretary Brian J. Bonis, Assistant Secretary Michelle A. Smith, Assistant Secretary Mark E. Van Der Weide, General Counsel Michael Held, Deputy General Counsel Trevor A. Reeve, Economist Stacey Tevlin, Economist Beth Anne Wilson, Economist Shaghil Ahmed, Brian M. Doyle, Carlos Garriga, Joseph W. Gruber, David E. Lebow, Ellis W. Tallman, Geoffrey Tootell, and William Wascher, Associate Economists Lorie K. Logan, Manager, System Open Market Account 1 The Federal Open Market Committee is referenced as the  FOMC  and the  Committee  in these minutes; the Board of Governors of the Federal Reserve System is referenced as the  Board  in these minutes. Patricia Zobel, Deputy Manager, System Open Market Account Ann E. Misback, Secretary, Office of the Secretary, Board Matthew J. Eichner,2 Director, Division of Reserve Bank Operations and Payment Systems, Board; Michael S. Gibson, Director, Division of Supervision and Regulation, Board Daniel M. Covitz, Deputy Director, Division of Research and Statistics, Board; Sally Davies, Deputy Director, Division of International Finance, Board; Rochelle M. Edge, Deputy Director, Division of Monetary Affairs, Board; Michael T. Kiley, Deputy Director, Division of Financial Stability, Board Jon Faust and Joshua Gallin, Senior Special Advisers to the Chair, Division of Board Members, Board Antulio N. Bomfim, Jane E. Ihrig, Kurt F. Lewis, and Nitish R. Sinha, Special Advisers to the Board, Division of Board Members, Board Linda Robertson, Assistant to the Board, Division of Board Members, Board Michael G. Palumbo, Senior Associate Director, Division of Research and Statistics, Board Stephanie E. Curcuru,2 Associate Director, Division of International Finance, Board; Eric C. Engstrom and Christopher J. Gust, Associate Directors, Division of Monetary Affairs, Board; Glenn Follette, Associate Director, Division of Research and Statistics, Board Erik A. Heitfield, Deputy Associate Director, Division of Research and Statistics, Board; Laura Lipscomb and Zeynep Senyuz,2 Deputy Associate Directors, Division of Monetary Affairs, Board 2 Attended through the discussion of principles for reducing the size of the balance sheet. _____________________________________________________________________________________________Page 1 Etienne Gagnon2 and Andrew Meldrum, Assistant Directors, Division of Monetary Affairs, Board Deborah Leonard2 and Rania Perry,2 Vice Presidents, Federal Reserve Bank of New York Mark A. Carlson, Adviser, Division of Monetary Affairs, Board James Dolmas, Economic Policy Adviser and Senior Economist, Federal Reserve Bank of Dallas Alyssa G. Anderson and Valerie S. Hinojosa, Section Chiefs, Division of Monetary Affairs, Board; Penelope A. Beattie,3 Section Chief, Office of the Secretary, Board Alyssa Arute, Manager, Division of Reserve Bank Operations and Payment Systems, Board Camille Bryan, Senior Project Manager, Division of Monetary Affairs, Board David H. Small, Project Manager, Division of Monetary Affairs, Board Damjan Pfajfar, Mary Tian, and Randall A. Williams, Group Managers, Division of Monetary Affairs, Board David B. Cashin, Principal Economist, Division of Research and Statistics, Board; Erin E. Ferris, Kyungmin Kim, and Bernd Schlusche,2 Principal Economists, Division of Monetary Affairs, Board; Colin J. Hottman, Principal Economist, Division of International Finance, Board David Na,2 Senior Financial Institution and Policy Analyst, Division of Monetary Affairs, Board Isaiah C. Ahn, Information Management Analyst, Division of Monetary Affairs, Board David Altig, Kartik B. Athreya, and Sylvain Leduc, Executive Vice Presidents, Federal Reserve Banks of Atlanta, Richmond, and San Francisco, respectively Anne Baum, John Clark,2 Spencer Krane, Paolo A. Pesenti, Julie Ann Remache,2 Keith Sill, and Mark L.J. Wright, Senior Vice Presidents, Federal Reserve Banks of New York, New York, Chicago, New York, New York, Philadelphia, and Minneapolis, respectively 3 Attended Tuesday s session only. Radhika Mithal,2 Markets Officer, Federal Reserve Bank of New York Annual Organizational Matters4 The agenda for this meeting reported that advices of the election of the following members and alternate mem- bers of the Federal Open Market Committee for a term beginning January 25, 2022, were received and that these individuals executed their oaths of office. The elected members and alternate members were as fol- lows: John C. Williams, President of the Federal Reserve Bank of New York, with Naureen Hassan, First Vice President of the Federal Reserve Bank of New York, as alternate Patrick Harker, President of the Federal Reserve Bank of Philadelphia, as alternate Loretta J. Mester, President of the Federal Reserve Bank of Cleveland, with Charles L. Evans, President of the Federal Reserve Bank of Chicago, as alternate James Bullard, President of the Federal Reserve Bank of St. Louis, with Meredith Black, Interim President of the Federal Reserve Bank of Dallas, as alternate Esther L. George, President of the Federal Reserve Bank of Kansas City, with Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, as alternate. By unanimous vote, the following officers of the Com- mittee were selected to serve until the selection of their successors at the first regularly scheduled meeting of the Committee in 2023: Jerome H. Powell John C. Williams James A. Clouse Matthew M. Luecke Brian J. Bonis Michelle A. Smith Mark E. Van Der Weide General Counsel Michael Held Richard M. Ashton Chair Vice Chair Secretary Deputy Secretary Assistant Secretary Assistant Secretary Deputy General Counsel Assistant General Counsel 4 Committee organizational documents are available at www.federalreserve.gov/monetarypolicy/rules_authoriza- tions.htm. Page 2Federal Open Market Committee_____________________________________________________________________________________________ Trevor Reeve Stacey Tevlin Beth Anne Wilson Shaghil Ahmed Brian M. Doyle Carlos Garriga Joseph W. Gruber Beverly Hirtle David E. Lebow Ellis W. Tallman Geoffrey Tootell William Wascher Economist Economist Economist Associate Economists By unanimous vote, the Committee selected the Federal Reserve Bank of New York to execute transactions for the System Open Market Account (SOMA). By unanimous vote, the Committee selected Lorie K. Logan and Patricia Zobel to serve at the pleasure of the Committee as manager and deputy manager of the SOMA, respectively, on the understanding that these se- lections were subject to being satisfactory to the Federal Reserve Bank of New York. Secretary s note: The Federal Reserve Bank of New York subsequently sent advice that the manager and deputy manager selections indi- cated previously were satisfactory. By unanimous vote, the Committee voted to reaffirm without revision the Authorization for Domestic Open Market Operations, as shown below. By unanimous vote, the Committee voted to reaffirm without revision the Authorization for Foreign Currency Operations and to amend the Foreign Currency Directive to remove ref- erences to the temporary dollar liquidity swap arrange- ments with foreign central banks, as shown below. The Guidelines for the Conduct of System Open Market Op- erations in Federal-Agency Issues remained suspended. AUTHORIZATION FOR DOMESTIC OPEN MARKET OPERATIONS (As reaffirmed effective January 25, 2022) OPEN MARKET TRANSACTIONS 1. The Federal Open Market Committee (the  Com- mittee ) authorizes and directs the Federal Reserve Bank selected by the Committee to execute open market trans- actions (the  Selected Bank ), to the extent necessary to carry out the most recent domestic policy directive adopted by the Committee: A. To buy or sell in the open market securities that are direct obligations of, or fully guaranteed as to prin- cipal and interest by, the United States, and securities that are direct obligations of, or fully guaranteed as to principal and interest by, any agency of the United States, that are eligible for purchase or sale under Sec- tion 14(b) of the Federal Reserve Act ( Eligible Secu- rities ) for the System Open Market Account ( SOMA ): i. As an outright operation with securities dealers and foreign and international accounts maintained at the Selected Bank: on a same-day or deferred de- livery basis (including such transactions as are com- monly referred to as dollar rolls and coupon swaps) at market prices; or ii. As a temporary operation: on a same-day or deferred delivery basis, to purchase such Eligible Se- curities subject to an agreement to resell ( repo transactions ) or to sell such Eligible Securities sub- ject to an agreement to repurchase ( reverse repo transactions ) for a term of 65 business days or less, a