FOMC meeting protocol

Some participants of the meeting felt that the risk of higher inflation as a result of the conflict in Ukraine was greater than the risk of lower growth. Inflation risks are skewed upward. Particularly because of energy prices.

Participants also expressed concern that depending on economic and financial developments, a shift toward tighter policies would be necessary. In their view, a rapid shift in the stance of monetary policy toward neutrality would be appropriate.

Risk management would be critical in determining the right monetary policy stance. At the meeting, they would like to raise the target range for the federal funds rate by 50 basis points.

As for balance sheet cuts, participants generally agreed that monthly limits of about $60 billion for treasuries and $35 billion for MBS would be appropriate. The balance sheet reduction could begin as early as May.