Full text of Federal Open Market Committee Meeting Minutes, Transcripts, and Other Documents : Meeting, September 20-21, 2016 : Presentation Materials

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Appendix 1: Materials used by Mr. Potter

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Class III FOMC – Internal (FR)

Material for Briefing on the

Proposed Revisions to Documents Governing
Foreign Currency Operations

Simon Potter

September 20, 2016

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Exhibit 1

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(2) FX Intervention Operations

(1) Document Structure
• Move all authorizing and purpose language into
Authorization and directing language into the
Directive

• Remove Selected Bank’s discretion to determine
whether to execute foreign exchange intervention
operations

• Incorporate existing Procedural Instructions into
Authorization and Directive, eliminating Procedural
Instructions

• Eliminate list of authorized currencies and $25 billion
limit on overall open position

• Move definition and governance of the Foreign
Currency Subcommittee from Authorization into the
Rules of Organization and Rules of Procedure,
respectively

(3) Warehousing of ESF
• Add provision expressly authorizing $5 billion
warehousing arrangement with U.S. Treasury
• Require Subcommittee approval of warehousing
transactions

• Increase Subcommittee approval authority from $1.5
billion to $5 billion per intermeeting period

(4) Reciprocal Currency Arrangements, Swap Lines
Reciprocal currency arrangements
• Remove Subcommittee’s authority to approve
drawings below a certain size
Standing liquidity swap lines
• For dollar draws, remove requirement that Chairman
approve initial draws; replace with governance
process for approving schedule of potential drawings
• For foreign currency draws by Federal Reserve,
require Committee approval of all draws

(6) General Governance

(5) Foreign Currency Holdings
• Provide revised investment objectives for the
management of foreign currency holdings

• Delegate Subcommittee authority to Chairman if the
Subcommittee cannot convene in the time available

• Delegate to Subcommittee the authority to provide
additional instruction to the Selected Bank

• Delegate Committee authority to Chairman in
exceptional circumstances

• Remove duration limit of 24 months

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Appendix: Other Proposed Changes
• Add provision to Authorization stating purpose of liquidity swap operations
• Add language clarifying authority of Chairman to designate System persons who may communicate with
Treasury regarding foreign currency operations
• Require Selected Bank to provide regular reports on foreign currency operations and investment activity
• Add directive to conduct operational readiness exercises of up to $2.5 billion per calendar year
• Remove two authorities specific to transactions that are no longer conducted:
• authority to conduct transactions at non-market exchange rates
• authority to use foreign currency holdings to purchase U.S. government securities under agreement
for repurchase as means of investment
• Remove requirement for referral to the Committee of agreements concerning administration of accounts
• Change method for calculating $5 billion limit on intervention transactions that Subcommittee may approve

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Appendix 2

Authorization for Foreign Currency Operations
As amended effective [September 20, 2016]

IN GENERAL
1.
The Federal Open Market Committee
(the “Committee”) authorizes the Federal Reserve Bank selected by the Committee (the
“Selected Bank”) to execute open market transactions for the System Open Market Account
as provided in this Authorization, to the extent
necessary to carry out any foreign currency directive of the Committee:
A. To purchase and sell foreign currencies
(also known as cable transfers) at home and
abroad in the open market, including with the
United States Treasury, with foreign monetary authorities, with the Bank for International Settlements, and with other entities in
the open market. This authorization to purchase and sell foreign currencies encompasses purchases and sales through
standalone spot or forward transactions and
through foreign exchange swap transactions.
For purposes of this Authorization, foreign
exchange swap transactions are: swap transactions with the United States Treasury (also
known as warehousing transactions), swap
transactions with other central banks under
reciprocal currency arrangements, swap
transactions with other central banks under
standing dollar liquidity and foreign currency liquidity swap arrangements, and swap
transactions with other entities in the open
market.
B. To hold balances of, and to have outstanding forward contracts to receive or to
deliver, foreign currencies.
2.
All transactions in foreign currencies undertaken pursuant to paragraph 1 above shall,
unless otherwise authorized by the Committee,
be conducted:

1 In general, as specified in Article IV, each
member of the IMF undertakes to collaborate with
the IMF and other members to assure orderly exchange arrangements and to promote a stable system of exchange rates. These obligations include
seeking to direct the member’s economic and financial policies toward the objective of fostering or-

A. In a manner consistent with the obligations regarding exchange arrangements under Article IV of the Articles of Agreement
of the International Monetary Fund (IMF). 1
B. In close and continuous cooperation
and consultation, as appropriate, with the
United States Treasury.
C. In consultation, as appropriate, with
foreign monetary authorities, foreign central
banks, and international monetary institutions.
D. At prevailing market rates.
STANDALONE SPOT AND FORWARD
TRANSACTIONS
3.
For any operation that involves
standalone spot or forward transactions in foreign currencies:
A. Approval of such operation is required
as follows:
i.
The Committee must direct the Selected Bank in advance to execute the operation if it would result in the overall volume of standalone spot and forward transactions in foreign currencies, as defined in
paragraph 3.C of this Authorization, exceeding $5 billion since the close of the
most recent regular meeting of the Committee. The Foreign Currency Subcommittee (the “Subcommittee”) must direct the
Selected Bank in advance to execute the
operation if the Subcommittee believes
that consultation with the Committee is not
feasible in the time available.
ii. The Committee authorizes the Subcommittee to direct the Selected Bank in
advance to execute the operation if it
would result in the overall volume of
standalone spot and forward transactions

derly economic growth with reasonable price stability. These obligations also include avoiding manipulating exchange rates or the international monetary system in such a way that would impede effective balance of payments adjustment or to give
an unfair competitive advantage over other members.

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Appendix 2

§3

Authorization for Foreign Currency Operations

in foreign currencies, as defined in paragraph 3.C of this Authorization, totaling
$5 billion or less since the close of the
most recent regular meeting of the Committee.
B. Such an operation also shall be:
i.
Generally directed at countering disorderly market conditions; or
ii. Undertaken to adjust System balances in light of probable future needs for
currencies; or
iii. Conducted for such other purposes
as may be determined by the Committee.
C. For purposes of this Authorization, the
overall volume of standalone spot and forward transactions in foreign currencies is defined as the sum (disregarding signs) of the
dollar values of individual foreign currencies
purchased and sold, valued at the time of the
transaction.
WAREHOUSING
4.
The Committee authorizes the Selected
Bank, with the prior approval of the Subcommittee and at the request of the United States
Treasury, to conduct swap transactions with the
United States Exchange Stabilization Fund established by section 10 of the Gold Reserve
Act of 1934 under agreements in which the Selected Bank purchases foreign currencies from
the Exchange Stabilization Fund and the Exchange Stabilization Fund repurchases the foreign currencies from the Selected Bank at a
later date (such purchases and sales also known
as warehousing).
RECIPROCAL CURRENCY ARRANGEMENTS, AND STANDING DOLLAR AND
FOREIGN
CURRENCY
LIQUIDITY
SWAPS
5.
The Committee authorizes the Selected
Bank to maintain reciprocal currency arrangements established under the North American
Framework Agreement, standing dollar liquidity swap arrangements, and standing foreign
currency liquidity swap arrangements as provided in this Authorization and to the extent

necessary to carry out any foreign currency directive of the Committee.
A. For reciprocal currency arrangements
all drawings must be approved in advance by
the Committee (or by the Subcommittee, if
the Subcommittee believes that consultation
with the Committee is not feasible in the time
available).
B. For standing dollar liquidity swap arrangements all drawings must be approved in
advance by the Chairman. The Chairman
may approve a schedule of potential drawings, and may delegate to the manager, System Open Market Account, the authority to
approve individual drawings that occur according to the schedule approved by the
Chairman.
C. For standing foreign currency liquidity
swap arrangements all drawings must be approved in advance by the Committee (or by
the Subcommittee, if the Subcommittee believes that consultation with the Committee
is not feasible in the time available).
D. Operations involving standing dollar
liquidity swap arrangements and standing
foreign currency liquidity swap arrangements shall generally be directed at countering strains in financial markets in the United
States or abroad, or reducing the risk that
they could emerge, so as to mitigate their effects on economic and financial conditions in
the United States.
E. For reciprocal currency arrangements,
standing dollar liquidity swap arrangements,
and standing foreign currency liquidity swap
arrangements:
i.
All arrangements are subject to annual review and approval by the Committee;
ii.
Any new arrangements must be approved by the Committee; and
iii. Any changes in the terms of existing
arrangements must be approved in advance by the Chairman. The Chairman
shall keep the Committee informed of any
changes in terms, and the terms shall be
consistent with principles discussed with
and guidance provided by the Committee.

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Appendix 2

§6

Authorization for Foreign Currency Operations

OTHER OPERATIONS IN FOREIGN CURRENCIES

and other deposit accounts at foreign institutions approved by the Board of Governors under Regulation N.
C. The Subcommittee, in consultation
with the Committee, may provide additional
instructions to the Selected Bank regarding
holdings of foreign currencies.

6.
Any other operations in foreign currencies for which governance is not otherwise
specified in this Authorization (such as foreign
exchange swap transactions with private-sector
counterparties) must be authorized and directed
in advance by the Committee.

ADDITIONAL MATTERS

FOREIGN CURRENCY HOLDINGS

7.
The Committee authorizes the Selected
Bank to hold foreign currencies for the System
Open Market Account in accounts maintained
at foreign central banks, the Bank for International Settlements, and such other foreign institutions as approved by the Board of Governors
under Section 214.5 of Regulation N, to the extent necessary to carry out any foreign currency
directive of the Committee.
A. The Selected Bank shall manage all
holdings of foreign currencies for the System
Open Market Account:
i.
Primarily, to ensure sufficient liquidity to enable the Selected Bank to conduct
foreign currency operations as directed by
the Committee;
ii. Secondarily, to maintain a high degree of safety;
iii. Subject to paragraphs 7.A.i and
7.A.ii, to provide the highest rate of return
possible in each currency; and
iv. To achieve such other objectives as
may be authorized by the Committee.
B. The Selected Bank may manage such
foreign currency holdings by:
i.
Purchasing and selling obligations
of, or fully guaranteed as to principal and
interest by, a foreign government or
agency thereof (“Permitted Foreign Securities”) through outright purchases and
sales;
ii. Purchasing Permitted Foreign Securities under agreements for repurchase of
such Permitted Foreign Securities and selling such securities under agreements for
the resale of such securities; and
iii. Managing balances in various time

The Committee authorizes the Chairman:
A. With the prior approval of the Committee, to enter into any needed agreement or
understanding with the Secretary of the
United States Treasury about the division of
responsibility for foreign currency operations between the System and the United
States Treasury;
B. To advise the Secretary of the United
States Treasury concerning System foreign
currency operations, and to consult with the
Secretary on policy matters relating to foreign currency operations;
C. To designate Federal Reserve System
persons authorized to communicate with the
United States Treasury concerning System
Open Market Account foreign currency operations; and
D. From time to time, to transmit appropriate reports and information to the National
Advisory Council on International Monetary
and Financial Policies.
9.
The Committee authorizes the Selected
Bank to undertake transactions of the type described in this Authorization, and foreign
exchange and investment transactions that it
may be otherwise authorized to undertake,
from time to time for the purpose of testing
operational readiness. The aggregate amount
of such transactions shall not exceed $2.5 billion per calendar year. These transactions shall
be conducted with prior notice to the
Committee.
10. All Federal Reserve banks shall participate in the foreign currency operations for System Open Market Account in accordance with
paragraph 3G(1) of the Board of Governors’
Statement of Procedure with Respect to Foreign Relationships of Federal Reserve Banks
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Appendix 2

§ 10

Authorization for Foreign Currency Operations

dated January 1, 1944.
11. Any authority of the Subcommittee pursuant to this Authorization may be exercised by
the Chairman if the Chairman believes that
consultation with the Subcommittee is not feasible in the time available. The Chairman shall
promptly report to the Subcommittee any action approved by the Chairman pursuant to this
paragraph.
12. The Committee authorizes the Chairman,
in exceptional circumstances where it would

not be feasible to convene the Committee, to
foster the Committee’s objectives by instructing the Selected Bank to engage in foreign currency operations not otherwise authorized pursuant to this Authorization. Any such action
shall be made in the context of the Committee’s
discussion and decisions regarding foreign currency operations. The Chairman, whenever
feasible, will consult with the Committee before making any instruction under this paragraph.

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Appendix 2

Foreign Currency Directive
As amended effective [September 20, 2016]

1.
The Committee directs the Federal Reserve Bank selected by the Committee (the
“Selected Bank”) to execute open market transactions, for the System Open Market Account,
in accordance with the provisions of the Authorization for Foreign Currency Operations
(the “Authorization”) and subject to the limits
in this Directive.
2.
The Committee directs the Selected Bank
to execute warehousing transactions, if so requested by the United States Treasury and if
approved by the Foreign Currency Subcommittee (the “Subcommittee”), subject to the limitation that the outstanding balance of United
States dollars provided to the United States
Treasury as a result of these transactions not at
any time exceed $5 billion.
3.
The Committee directs the Selected Bank
to maintain, for the System Open Market Account:
A. Reciprocal currency arrangements with
the following foreign central banks:
Foreign central bank

Bank of Canada
Bank of Mexico

Maximum amount
(millions of dollars
or equivalent)
2,000
3,000

B. Standing dollar liquidity swap arrangements with the following foreign central
banks:

Bank of Canada
Bank of England
Bank of Japan
European Central Bank
Swiss National Bank
C. Standing foreign currency liquidity
swap arrangements with the following foreign central banks:
Bank of Canada
Bank of England
Bank of Japan
European Central Bank
Swiss National Bank
4.
The Committee directs the Selected Bank
to hold and to invest foreign currencies in the
portfolio in accordance with the provisions of
paragraph 7 of the Authorization.
5.
The Committee directs the Selected Bank
to report to the Committee, at each regular
meeting of the Committee, on transactions undertaken pursuant to paragraphs 1 and 6 of the
Authorization. The Selected Bank is also directed to provide quarterly reports to the Committee regarding the management of the foreign currency holdings pursuant to paragraph 7
of the Authorization.
6.
The Committee directs the Selected Bank
to conduct testing of transactions for the purpose of operational readiness in accordance
with the provisions of paragraph 9 of the Authorization.

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Appendix 2

Federal Open Market Committee—Rules of Organization
As amended effective [September 20, 2016]

SECTION 1—Authority
The rules i are issued by the Federal Open Market Committee (the “Committee”) pursuant to
the requirement of section 552 of title 5 of the
United States Code ii that every agency shall
publish in the Federal Register a description of
its central and field organization.
SECTION 2—Composition of Committee
(a) Members. The Committee consists of the
seven members of the Board of Governors of
the Federal Reserve System (the “Board”) and
five representatives of the Federal Reserve
Banks, each of whom is a president or a first
vice president of a Federal Reserve Bank.
(b) Federal Reserve Bank representatives.
The representatives of the Federal Reserve
Banks, and an alternate for each representative,
are elected by the boards of directors of the
Federal Reserve Banks in accordance with section 12A of the Federal Reserve Act (12 USC
263) for annual terms commencing on the date
of the first regularly scheduled meeting of the
Committee occurring on or after January 1 of
each year. Prior to the first regularly scheduled
meeting of the Committee on or after January 1
of each year, each member of the Committee
representing the Federal Reserve Banks shall
cause a record of the member’s election and of
the election of the member’s alternate to be forwarded to the secretary of the Committee. If
any question is raised as to the election or eligibility of a member or alternate, the Committee determines such question before such member or alternate participates in a meeting of the
Committee. In the event a member is absent
from a meeting of the Committee, the member’s alternate, in attending the meeting, shall
have the same status as the member for whom
the alternate is serving. If a member or alternate ceases to be a president or first vice president of a Federal Reserve Bank, a successor
may be chosen in a special election by the
boards of directors of the appropriate Federal
Reserve Bank or Banks and such successor
serves until the next annual election.

(c) Oath of office. Each member of the Committee and each alternate take the same oath of
office as that prescribed by statute to be taken
by officers of the United States.
SECTION 3—Chairman and Vice Chairman
At its first regularly scheduled meeting on or
after January 1 of each year, the Committee
elects a Chairman and a Vice Chairman from
among its membership. The Chairman presides
at all meetings of the Committee and performs
such other duties as the Committee may require. The Vice Chairman performs the duties
of the Chairman in the absence of the Chairman. In the absence of both the Chairman and
the Vice Chairman of the Committee, the Vice
Chairman of the Board acts as Chairman of the
Committee; and, in the absence of the Chairman and the Vice Chairman of the Committee
and the Vice Chairman of the Board, the member of the Board present with the longest service as a member of the Board acts as Chairman
of the Committee.
SECTION 4—Foreign Currency Subcommittee
The Foreign Currency Subcommittee (the
“Subcommittee”) consists of the Chairman and
Vice Chairman of the Committee, and the Vice
Chairman of the Board of Governors, and such
other member of the Board as the Chairman
may designate (or in the absence of members of
the Board serving on the Subcommittee, (or another Board members designated by the Chairman as an alternates if a member of the Board
serving on the Subcommittee is unavailable,
and in the absence of the Vice Chairman of the
Committee, the alternate of the Vice Chairman
’s alternateof the Committee if the Vice Chairman of the Committee is unavailable).
SECTION 5—Staff
(a) Selection of staff officers. At its first regularly scheduled meeting on or after January 1
of each year, the Committee selects, from
among the officers and employees of the Board
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Federal Open Market Committee—Rules of Organization

and the Federal Reserve Banks, the following
staff officers to serve until the first regularly
scheduled meeting on or after January 1 of the
next following year: secretary, deputy secretary, and one or more assistant secretaries; general counsel, deputy general counsel, and one
or more assistant general counsels; economists,
one or more of whom may be designated as
senior or associate economists or given titles
reflecting their areas of particular specialization; and such other officers as the Committee
might wish from time to time. A staff officer
ceases to be an officer of the Committee if he
or she ceases to be employed by the Board or
by a Federal Reserve Bank or if the Committee
selects a successor to that staff officer.
(b) Secretary and deputy and assistant secretaries. The secretary keeps minutes of actions
and records of discussions at all meetings of the
Committee; maintains a complete record of the
actions taken by the Committee upon all questions of policy relating to open market operations; and records the votes taken in connection
with the determination of open market policies
and the reasons underlying each such action.
The secretary has custody of such minutes and
records, and performs such other duties as the
Committee may require. In the absence of the
secretary of the Committee, the deputy secretary or an assistant secretary acts as secretary
pro tem.
(c) Economists. The economists prepare for
the use of the Committee and present to it such
information regarding business and credit conditions and domestic and international economic and financial developments as will assist
the Committee in the determination of open
market policies, and they perform such other
duties as the Committee may require.

(d) General counsel and deputy and assistant
general counsel. The general counsel furnishes
such legal advice as the Committee may require. In the absence of the general counsel, the
deputy general counsel or an assistant general
counsel acts as general counsel pro tem.
(e) Filling of vacancies. At any meeting the
Committee may fill any vacancy in the offices
described in this section.
(f) Other staff assistance. The services of
any officers and employees of the Board and
the Federal Reserve Banks are made available
and are utilized by the Committee as required.
SECTION 6—Manager and Deputy Manager
The Committee selects a manager and deputy
manager of the System Open Market Account.
The foregoing shall be satisfactory to the Federal Reserve Bank selected by the Committee
to execute open market transactions for such
account (the “Selected Bank”) and shall serve
at the pleasure of the Committee. The manager
keeps the Committee informed on market conditions and on transactions made for such account and renders such reports as the Committee may specify. In the absence of the manager,
the deputy manager acts as manager pro tem.
In the event that the president of the Selected
Bank determines that the manager or deputy
manager is not able to perform the duties of the
position, the Chairman may select a person satisfactory to such president to serve as manager
or deputy manager (as relevant) until the Committee and the Selected Bank select a replacement manager or (as relevant) deputy manager
in accordance with this section.

These are uncodified rules, for use within the
Federal Reserve System.

See 5 USC 552(a)(1) at 8-311.

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Appendix 2

Federal Open Market Committee—Rules of Procedure
12 CFR 272; as amended effective [September 20, 2016]
§ 272.3

Federal Open Market Committee—Rules of Procedure

SECTION 272.1—Authority
This part i is issued by the Federal Open Market
Committee (the “Committee”) pursuant to the
requirement of section 552 of title 5 of the
United States Code that every agency shall
publish in the Federal Register its rules of procedure.
SECTION 272.2—Functions of the Committee
The procedures followed by the Committee are
designed to facilitate the effective performance
of the Committee’s statutory functions with respect to the regulation and direction of open
market operations conducted by the Federal
Reserve Banks and with respect to certain direct transactions between the Federal Reserve
Banks and the United States. In determining
the policies to be followed in such operations,
the Committee considers information regarding
business and credit conditions and domestic
and international economic and financial developments, and other pertinent information gathered and submitted by its staff and the staffs of
the Board of Governors of the Federal Reserve
System (the “Board”) and the Federal Reserve
Banks. Against the background of such information, the Committee takes actions from time
to time to regulate and direct the open market
operations of the Federal Reserve Banks. Such
policy actions ordinarily are taken through the
adoption and transmission to the Federal Reserve Banks of regulations, authorizations, and
directives.
SECTION 272.3—Meetings
(a) Place and frequency. The Committee
meets in Washington, D.C., at least four times
each year and oftener if deemed necessary.
Meetings are held upon the call of the Chairman of the Board or at the request of any three
members of the Committee. Notices of calls by
the Chairman of the Board to other members
are given by the secretary of the Committee in
writing, by telephone, or electronic means. Requests of any three members for the calling of
a meeting shall state the time therefore and

shall be filed in writing, by telephone, or electronic means with the secretary who shall forthwith notify all members of the Committee in
writing, by telephone, or electronic means.
When the secretary has sent notices to all members of the Committee that a meeting has been
requested by three members and of the time
therefore, a meeting is deemed to have been
called. If, in the judgment of the Chairman, circumstances require that a meeting be called at
such short notice that one or more members
cannot be present in person, such members may
participate in the meeting by telephone conference arrangements or by electronic means.
(b) Alternates. Whenever any member of the
Committee representing Federal Reserve
Banks shall find that the member will be unable
to attend a meeting of the Committee, the member shall promptly notify the member’s alternate and the secretary of the Committee in writing, by telephone, or electronic means, and
upon receipt of such notice such alternate shall
advise the secretary whether the alternate will
attend such meeting.
(c) Quorum. Seven members, at least one of
whom represents a Federal Reserve Bank, constitute a quorum of the Committee for purposes
of transacting business except that, if there are
fewer than seven members in office, then the
number of members in office constitute a
quorum. For purposes of this paragraph (c),
members of the Committee include alternates
acting in the absence of members. Less than a
quorum may adjourn a meeting of the Committee from time to time until a quorum is in attendance.
(d) Attendance at meetings. Attendance at
Committee meetings is restricted to members
and alternate members of the Committee, the
presidents of Federal Reserve Banks who are
not at the time members or alternates, staff officers of the Committee, the manager, and such
other advisers as the Committee may invite
from time to time.
(e) Meeting agendas. The secretary, in consultation with the Chairman, prepares an
agenda of matters to be discussed at each regularly scheduled meeting and the secretary trans-

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§ 272.3

Federal Open Market Committee—Rules of Procedure

mits the agenda to the members of the Committee within a reasonable time in advance of such
meeting. In general, the agendas include reports by the manager on open market
operations since the previous meeting, and ratification by the Committee of such operations;
reports by economists on, and Committee discussion of, the economic and financial situation
and outlook; Committee discussion of monetary policy and action with respect thereto; and
such other matters as may be considered necessary.
(f) Foreign Currency Subcommittee. Meetings of the Foreign Currency Subcommittee
(the “Subcommittee”) shall be called at the request of any Subcommittee member, or at the
request of the manager. for the purposes of reviewing recent or contemplated operations and
of consulting with the manager on other matters
relating to the manager’s responsibilities. At
the request of any member of the Subcommittee, questions arising from such reviews and
consultations a matter before the Subcommittee
shall be referred for determination to the Committee.
SECTION 272.4—Committee Actions
(a) Actions at meetings. Actions are taken at
meetings of the Committee except as described
below.
(b) Policy actions between meetings. Special
circumstances may make it desirable in the
public interest for Committee members to consider an action to modify an outstanding Committee authorization or directive at a time when
it is not feasible to call a meeting. Whenever,
in the judgment of the Chairman, such circumstances have arisen, the relevant information
and recommendations for action are transmitted to the members by the secretary, and the
members communicate their votes to the secretary. If the action is approved by a majority of
the members, advice to that effect is promptly
given by the secretary to the members of the
Committee and to the Federal Reserve Bank selected to execute transactions for the System
Open Market Account. All communications of

recommended actions and votes under this paragraph shall be in writing, by telephone, or
electronic means; if the communication is made
orally, the secretary shall cause a written record
to be made without delay. An action taken between meetings has the force and effect of an
action at a meeting; provided, however, that if
a meeting is held before the execution of any
operations pursuant to the action, the action is
null and void unless it is ratified and confirmed
by the Committee at such meeting.
(c) Other actions between meetings. Circumstances may make it desirable in the public
interest for Committee members to consider
other actions, such as approval of the minutes,
between meetings. In these circumstances, the
relevant information and recommendations for
such action are transmitted to the members by
the secretary, and the members communicate
their votes to the secretary. All communications of recommended actions and votes under
this paragraph shall be in writing, by telephone,
or electronic means; if the communication is
made orally, the secretary shall cause a written
record to be made without delay.
(d) Delegations of authority. In special circumstances, the Committee may delegate authority to take an action, subject to such instructions or guidelines as the Committee deems
proper. Such delegations of authority may be
made to the Chairman; to a subcommittee consisting of the Chairman and the Vice Chairman
of the Committee and the Vice Chairman of the
Board (or in the absence of the Chairman or of
the Vice Chairman of the Board the members
of the Board designated by the Chairman as alternates, and in the absence of the Vice Chairman of the Committee the alternate for the Vice
Chairman); or to any other member or members
of the Committee. An action taken pursuant to
such a delegation of authority has the force and
effect of an action taken by the Committee.
(e) Technical changes to Committee rules.
The secretary of the Committee (or the acting
secretary) is authorized to make technical corrections, such as spelling, grammar, construction, and organization (including removal of
obsolete provisions and references), to the
Committee’s rules, regulations, and orders and
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other records of Committee action but only
with the concurrence of the Committee’s general counsel.
(f) Effective date. Committee action ordinarily is made effective as of the time it is taken
because the nature of the subject matter and the
action taken is such that the public interest and
the proper discharge of the Committee’s responsibilities so require. Occasionally, however, the Committee may specify that an action
is to be effective at some different

time.

i The words “this part,” as used herein, means
Rules of Procedure of the FOMC (Code of Federal

Regulations, title 12, chapter II, part 272).

SECTION 272.5—Notice and Public Procedure
There ordinarily is no published notice of proposed action by the Committee or public procedure thereon, as described in section 553 of
title 5 of the United States Code, because such
notice and procedure are impracticable, unnecessary, or contrary to the public interest.

Page 1of 1

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173 of 216

Appendix 2: Materials used by Mr. Potter and Ms. Logan

Page 1of 1

September 20-21, 2016

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174 of 216

Class II FOMC – Restricted (FR)

Material for Briefing on

Financial Developments and
Open Market Operations

Simon Potter and Lorie K. Logan
September 20, 2016

Page 1of 1

September 20-21, 2016

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175 of 216
Exhibit 1

Class II FOMC – Restricted (FR)

(2) Implied Federal Funds Rate Path*

(1) Asset Price Changes
Sept. IMP Change

Current Level

U.S. Dollar Index

-0.5%

1193

S&P 500 Index

-1.4%

2139

5-Year HY OAS

-19 bps

5.02%

10-Year Real Yield

+11 bps

0.17%

10-Year BEI

+2 bps

1.52%

Market-Implied: Current
Market-Implied: Before July FOMC
September Survey Unconditional Path (Mean)
July Survey Unconditional Path (Mean)

Percent

1.5
1.0

3-Mo. LIBOR-OIS

+9 bps

0.5
0.0
09/16/16

42 bps

Source: Barclays, Bloomberg

(3) Average Survey Probability for Timing of
Next Rate Increase*
Pre-September FOMC Desk Survey
Post-September 2015 FOMC Desk Survey

Percent

50
45
40
35
30
25
20
15
10
5
0

09/16/17

09/16/18

09/16/19

*Market-implied paths derived from federal funds and Eurodollar futures,
survey paths are the average PDF-implied means from the September and July
Surveys of Primary Dealers and Market Participants.
Source: Bloomberg, Desk Calculations

(4) Path of Money Market Futures-Implied Rates*
U.S.

U.K.

Japan

Euro Area

Percent

1.6
1.2
0.8
0.4
0.0
-0.4
-0.8
Sept.

Nov.

Dec.

Sept.

2016

Oct.

Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep
'16 '16 '17 '17 '17 '17 '18 '18 '18 '18 '19 '19 '19

Dec.

2015

*Based on all respondents from the September 2015, September 2015 Flash,
and September 2016 Surveys of Primary Dealers and Market Participants.
Source: Federal Reserve Bank of New York

*Levels of Tibor, Short Sterling, Euribor, and Eurodollar futures-implied rates
for Japan, U.K., Euro Area, and U.S., respectively.
Source: Bloomberg

(5) BoE Policy Action Over Intermeeting Period

(6) Changes in Nominal 30-Year Yields Across G4
From July FOMC to ECB Meeting
From ECB Meeting to Current
Total Change

• Policy rate cut to 25 bps
• Additional gilt purchases
• New corporate bond purchases
• Introduced Term Funding Scheme
Forward guidance:
• Majority of MPC members expect additional rate
cut by end of 2016
• Lower bound on rates viewed as “close to, but a
little above, zero”

BPS

40
30
20
10
0
-10
-20
-30
-40
-50
U.S.
Source: Bloomberg

Germany

Japan

U.K.
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176 of 216
Exhibit 2

Class II FOMC – Restricted (FR)

(8) Select Asset Performance Since July FOMC

(7) Bank Sector Performance Against Broader
Indices Over Intermeeting Period*
Percent

U.S.

14
12
10
8
6
4
2
0
-2
-4
-6
07/26/16

U.K.

08/09/16

Japan

08/23/16

HY Credit Index

-19 bps

5.02 %

EM Bond Index

-14 bps

3.71 %

MBS OAS

-9 bps

0.28 %

Source: Barclays, Bloomberg, J.P. Morgan Markets

(9) Standardized Implied Volatility Indices*
Developed Market Currencies
U.S. Equities
U.S. Short Rates**
U.S. Long Rates***

2.5

Current Level

09/06/16

*Percentage difference in bank performance relative to respective broader
index since the July FOMC.
Source: Bloomberg

Standard
Deviations

Change

Euro Area

Rating

July
FOMC

1.5

(10) Average Ratings of Importance of Factors
Explaining Low Levels of Implied Volatility*

4
3

0.5
2
-0.5
1
-1.5
01/01/16

03/01/16

05/01/16

07/01/16

Adv.
Foreign
Cent. Bk.

09/01/16

*Standardized 1-month implied volatilities since June 1994.
**Swaption with 2-year underlying.
***Swaption with 10-year underlying.
Source: Barclays, Bloomberg, CBOE, Deutsche Bank, Desk Calculations

1
0
-1
-2
-3
-4
-5
-6
-7
-8
12/31/15

CNY-USD

CFETS Index*

Econ.
Outlook

EM Cent.
Bk.

Political
Uncertainty

*Based on all responses from the September Surveys of Primary Dealers and
Market Participants.
Source: Federal Reserve Bank of New York

(11) Chinese Exchange Rate Since Start of Year
Percent
Change

Fed

(12) Three-Month USD-MXN Implied Volatility
PPTS

18
17
16

U.S. Election
Enters 3-Month
Window

15
July
FOMC

CNY
Depreciation
Year-to-Date

14
13
12

03/31/16

06/30/16

*RMB exchange rate against a basket of 13 currencies. Computed from central
parity rates for all currencies traded on CFETS.
Source: Bloomberg, Desk Calculations

11
07/01/16
Source: Bloomberg

07/22/16

08/12/16

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September 20-21, 2016

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177 of 216
Exhibit 3

Class II FOMC – Restricted (FR)

(13) Money Market Mutual Fund AUM
Treasury
Tax-Exempt

$Billions

3000
2750
2500
2250
2000
1750
1500
1250
1000
750
500
250
0
10/01/15

Gov't/Agency
Prime
July FOMC

$Billions

600
400
200
0

Gov't Repo
Fed RRP
Gov't Securities

-200
-400
-600
Prime Outflow

01/01/16

04/01/16

07/01/16

Source: iMoneyNet

Other

500

(16) Prime MMF Holdings and WAM*

Gov't MMF

450

$Billions

525
500
475
450
425
400
375
350
325
300
275
01/01/14

July FOMC

400
350
300
250
200
150
100
50
0
10/01/15

01/01/16

04/01/16

07/01/16

BPS

Canada
Projected

50
45
40
35
30
25
July FOMC

20
15

08/01/14

03/01/15

10/01/15

05/01/16

France

U.S.

Japan

Other

$Billions

MMF Reform Implementation Date

0
01/01/15

Days

(18) Maturing Volumes of Financial CP and CDs*

(17) 3-Month LIBOR-OIS Spreads and
Survey Expectations*
Median Survey Expectations
Market-Implied Levels

CP and Time Deposits (LHS)
WAM (RHS)

*Excludes quarter-end values.
Source: iMoneyNet

Source: Federal Reserve Bank of New York

Gov't Inflow
From Prime Outflow

*Forecasts based on average across all responses from the Desk's survey of
money market mutual funds.
Source: Federal Reserve Bank of New York, SEC form N-MFP

(15) ON RRP Participation
$Billions

(14) Estimated MMF Flows from End of
July to Implementation Date*

20
06/01/15

11/01/15

04/01/16

09/01/16

*Survey expectations shown are the medians across all responses from the
September Surveys of Primary Dealers and Market Participants in addition to
Desk surveys of money market mutual funds and banks.
Source: Bloomberg, Federal Reserve Bank of New York

10
0
09/13/16 10/04/16 10/25/16 11/15/16 12/06/16 Page
12/27/16
1of 1
*For securities with tenors of one-month to one-year.
Source: DTCC

September 20-21, 2016

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178 of 216
Exhibit 4

Class II FOMC – Restricted (FR)

(20) Money Market Rates*

(19) Three-Month Swap Basis
BPS

USD-JPY

130

EUR-USD

GBP-USD
July FOMC

110

Relative Cost of
Borrowing USD
over LIBOR

90
70
50
30
10
-10
01/01/12

01/01/13

01/01/14

01/01/15

01/01/16

EFFR

GCF

Tri-Party Ex. GCF and RRP**

BPS

100
“Brexit”
90
80
70
60
50
40
30
20
10
0
10/01/15 12/01/15 02/01/16 04/01/16 06/01/16 08/01/16
*EFFR reflects FR2420 data. Grey dashed lines indicate quarter-ends.
**Excludes intra-bank transactions.
Source: Federal Reserve Bank of New York

Source: Bloomberg

(21) MBS LSAP and Reinvestment Purchases
$Billions

LSAP Purchases

Reinvestments

(22) Implementation of New Foreign Reserves
Investment Framework
Ready to implement new benchmark discussed in April
New framework:
• More explicit process for assessing investment objectives
• Uses mean-variance optimization approach to establish
benchmark portfolio
• Will result in increase in cash and longer-term securities
for the euro portfolio
• Will leave maturing yen proceeds on deposit with the BoJ
for time being

70
60
50
40
30
20
10
0
12/12 06/13 12/13 06/14 12/14 06/15 12/15 06/16
Source: Federal Reserve Bank of New York

Timeline:
• Begin implementation in early October
• Take 3 months to reinvest maturing proceeds toward new
benchmark
• Update FOMC at next meeting on status
• Provide quarterly updates thereafter

Page 1of 1

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Appendix (Last)

Class II FOMC – Restricted (FR)

Appendix: Summary of Operational Testing
Summary of Operational Tests in prior period:
• Domestic Authorization
o August 16: Treasury Outright purchase for $400 million
Upcoming Operational Tests
• One test scheduled under the Domestic Authorization
o October 5 and 6: Coupon swaps with unsettled agency MBS holdings for approximately $20 million
• Three tests scheduled under the Foreign Authorization
o October 6: Liquidity swap with four foreign central banks for approximately USD51 thousand
o October 18: Liquidity swap with the Bank of Japan for approximately JPY51 thousand
o October 20: Liquidity swap with the Bank of England for approximately GBP51 thousand

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Appendix 3: Materials used by Ms. McLaughlin

Page 1of 1

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181 of 216

Class II FOMC – Restricted (FR)

Material for Briefing on

Proposed Counterparty Policy

Susan McLaughlin
September 20, 2016

Page 1of 1

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182 of 216
Exhibit 1

Class II FOMC – Restricted (FR)

(1) Counterparty Information on FRBNY
Public Website - September 2016

(2) Proposed Changes to Primary Dealer
Eligibility Criteria

Primary
Dealers

RRP

Foreign
Reserves

List of
Counterparties

Yes

Counterparty Policy

Yes

Ex Post Trade
Disclosures

Yes

• Reduce minimum net regulatory capital
threshold from $150 million to $50 million
• Increase minimum Tier 1 capital threshold from
$150 million to $1 billion
• Establish a new 0.25 percent Treasury market
share threshold for all primary dealers

Source: FRBNY

(4) Evolution of Market Share Threshold

(3) Impact Analysis for New Net
Regulatory Capital (NRC) Threshold
Minimum net regulatory
capital threshold

Estimate of additional government
securities dealers that will be
eligible to apply

$100 million

$75 million

$50 million

Source: FRBNY

Date

Use of market share to assess primary dealer
capacity

FRBNY public statement says primary dealers have a
"substantial share" of their activity with retail customers.
FRBNY President Corrigan notes that the 1% market
April
share threshold is a barrier to entry for new primary
1985
dealers.
FRBNY official says that a primary dealer must account,
September
on average, for at least 0.75% of customer trades done by
1985
all primary dealers.
Desk requires primary dealers to account for at least 1%
Mid 1988 of total primary dealer volume with customers, as
measured by FR 2004 data.
Market share requirement dropped from primary dealer
policy after 1991 Salomon Brothers Treasury auction
1992
scandal, amid efforts to expand primary dealer list.

March
1982

Source: FRBNY

(5) Monthly Customer Market Shares Reported by Recent Primary Dealer and TOC Pilot Applicants
Application type
Firm NRC at
application
Average monthly
market share
over data period
Data period

Source: FRBNY

TOC

$2 billion

$122
million

$325
million

$1.2
million

$15.3
million

$2.7
million

$3.2
million

$46.1
million

1.23%

0.32%

0.76%

0.01%

0.00%

0.001

0.01%

0.02%

0.10%

Jan–Dec Feb 2011- Aug–Dec Jan 2010- Jan 2010- Jan 2010- Jan 2010- Jan 2010- Jan 20102014 Apr 2012 2010 Dec 2012 Dec 2012 Dec 2012 Dec 2012 Dec 2012 Dec 2012

Page 1 of 1

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Appendix 4: Materials used by Mr. Wilcox

183 of 216

September 20-21, 2016

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Class II FOMC – Restricted (FR)

Material for Briefing on

The U.S. Outlook

David W. Wilcox
September 20, 2016

184 of 216

September 20-21, 2016

Authorized for Public Release

185 of 216

Class II FOMC - Restricted (FR)

Forecast Summary
Confidence Intervals for Panels 2, 4, 5, and 6 Based on FRB/US Stochastic Simulations
1. Evolution of 2016:Q3 GDP Growth
Nowcasts

2. Real GDP

Percent, annual rate

Judgmental (Tealbook-consistent)
Board staff factor model
System models

5
4

-1

-2

-4

-1
July

Aug.

Sept.

8
6

June

-2

Percent change, annual rate
Sept. TB
July TB
70% confidence interval

2014

2015

2016

2017

2018

2019

-4

Note: The shaded region is a 70 percent confidence interval around
the Board staff factor model estimate.

3. Output Gap Estimates

4. Unemployment Rate
Percent

Staff output gap
Previous Staff output gap
Range of four model estimates
16:Q2

6
4

-2

-4

-6

-8

2010

2012

2014

2016

2018

5. PCE Prices
Sept. TB
July TB
70% confidence interval

5
4

2015

2016

2017

2018

2019

-1

-2

-2
2016

2017

Percent change, annual rate

Sept. TB
July TB
70% confidence interval

2015

2014

4
3

2014

-3

Natural rate

6. PCE Prices Excluding Food and Energy
Percent change, annual rate

2008

2006

Sept. TB
July TB
70% confidence interval

-8

Percent

2018

2019

-3

5
4

-1

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2014

2015

2016

2017

2018

2019

-1

September 20-21, 2016

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7. Inflation Revisions Since December:
Total PCE

8. Inflation Revisions Since December:
Core PCE

Percentage points
Source of Revision:

Revisions to Projection

186 of 216

Class II FOMC - Restricted (FR)

Percentage points

0.7

Source of Revision:

Revisions to Projection

Food
Energy
Core

Resource utilization
Energy price passthrough
Import prices
Underlying inflation
Other

0.5
0.3

2015

2016

2017

-0.1

-0.3

-0.5

2015

2016

2017

-0.7

2018

10. U-6 by Race or Ethnicity
Percent

Black or African-American
Hispanic or Latino
Aggregate
White

0.3
0.1

9. U-3 by Race or Ethnicity
20

0.5

0.1

-0.7

2018

0.7

20
16

Percent of labor force plus marginally attached

Black or African-American
Hispanic or Latino
Aggregate
White

25
20

30
25
20

12
15

8
10

10
Aug.

4
Aug.

2000

2004

2008

2012

2016

5
0

Note: Three-month moving averages. Shaded bars indicate a period
of business recession as defined by the NBER.

2000

2004

2008

2012

2016

Note: Three-month moving averages. Data by race and ethnicity are
constructed from CPS microdata and seasonally adjusted by Board
staff. Shaded bars indicate a period of business recession as defined
by the NBER.

11. Employment-to-Population Ratios

Percent

Black or African-American
Hispanic or Latino
Aggregate
White

83
81
79

85
83
81
79

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

Note: Annual averages of monthly not-seasonally-adjusted data. Observation for 2016 is the average of year-to-date monthly values. Data pertain to
persons between the ages of 25 and 54.

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Class II FOMC - Restricted (FR)

12. Unemployment Rates by Age
Percent

32
Black

Hispanic

White

16
to
19

20
to
24

25
to
29

30
to
34

35
to
39

40
to
44

45
to
49

50
to
54

55
to
59

60
to
64

65
to
69

70
to
74

75
or
older

13. Unemployment Rates by Educational Attainment
Percent

20
Black

Hispanic

White

High School Dropout

High School Graduate

Some College, or
Associate’s Degree

Note: Data in panels 12 and 13 are averages of monthly observations from September 2015 through August 2016.

3 of 8

Bachelor’s or More

September 20-21, 2016

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Class II FOMC - Restricted (FR)

14. Black Unemployment Rates Compared to White Unemployment Rates
Percent

Unemployment Rate for Blacks

Early: Jan 1994 to Dec 2007
Late: Jan 2011 to Aug 2016

y = 1.8 x + 1.64
12

y = 1.8 x + 1.29

0
18

Unemployment Rate for Whites
15. Hispanic Unemployment Rates Compared to White Unemployment Rates
Percent

Early: Jan 1994 to June 2001
Middle: July 2001 to Dec 2010
Late: Jan 2011 to Aug 2016

Unemployment Rate for Hispanics

y = 1.51 x - 0.56

y = 2.28 x - 1.94

y = 1.45 x - 0.15

Unemployment Rate for Whites
4 of 8

0
16

September 20-21, 2016

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Class II FOMC - Restricted (FR)

16. Black Unemployment Rates Compared to White Unemployment Rates
by Educational Attainment
(annual averages of monthly not-seasonally-adjusted data)

Less than High School

High School

Black unemployment rate

30
25

Black unemployment rate

y = 1.62 x + 1.78

y = 1.7 x + 1.57

5
0

0
30

0
18

White unemployment rate

Bachelor’s degree or more

Some college or associate’s degree
Black unemployment rate

Black unemployment rate

y = 1.79 x + 0.19

y = 1.84 x - 0.55

0
16

White unemployment rate

5 of 8

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Class II FOMC - Restricted (FR)

17. Hispanic Unemployment Rates Compared to White Unemployment Rates
by Educational Attainment
(annual averages of monthly not-seasonally-adjusted data)

Less than High School

High School

Hispanic unemployment rate

y = 0.95 x + 0.12

Hispanic unemployment rate

14
12

y = 1.28 x - 0.43
10

0
14

White unemployment rate

y = 1.34 x - 0.35

12
10

0
14

Bachelor’s degree or more

Hispanic unemployment rate

White unemployment rate

Some college or associate’s degree
12

0
12

Hispanic unemployment rate

y = 1.62 x - 0.69
6

White unemployment rate

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18. Involuntary Part-Time Employment
Percent

191 of 216

Class II FOMC - Restricted (FR)

19. Duration of Unemployment by Race
6

Percent of unemployed

Black
Hispanic
White

36
5

Black

Hispanic

40
36
32

White

Less
than 5
weeks

5 to 14
weeks

15 to 26 27 to 98 99 weeks
weeks weeks and Over

Note: Data in panels 18 and 19 are averages of monthly observations from September 2015 through August 2016.

7 of 8

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Class II FOMC - Restricted (FR)

Appendix

Key Economic Indicators for the September, November, and December FOMC Meetings
(Percent change at annual rate, except as noted)

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

3‐month change
July Tealbook

2.5
2.5

1.1
1.4

1.0
1.0

1.3
0.8

1.7

1.4

1.0

12‐month change
July Tealbook

0.9
0.8

0.8
0.8

0.9
0.9

1.2
1.0

1.2

1.1

1.3

3‐month change
July Tealbook

1.8
1.8

1.3
1.5

1.4
1.3

1.5
1.3

1.6

1.4

1.3

12‐month change
July Tealbook

1.6
1.6

1.7

Unemployment rate (percent)
July Tealbook

4.9
4.9

4.9

Payroll employment (change in 000s)
July Tealbook

271
287

275
165

151
165

185
165

171

Total PCE price index

Core PCE price index

2nd Q2 est. 1st Q3 est.
1.4
2.7
1.8
1.9

Gross Domestic Product
July Tealbook

2nd Q3 est.
2.7
1.9

Key : Estimate first available at:
September meeting

November meeting

8 of 8

December meeting

September 20-21, 2016

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Appendix 5: Materials used by Mr. Wood

193 of 216

September 20-21, 2016

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Class II FOMC – Restricted (FR)

Material for Briefing on

The International Outlook

Paul R. Wood

September 20, 2016

194 of 216

September 20-21, 2016

Authorized for Public Release

195 of 216

Exhibit 1

Class II FOMC - Restricted (FR)

The International Outlook
1. Economic Policy Uncertainty Indexes
Monthly

2. Foreign GDP*

Mean = 0; Std. Dev. = 100*

Percent change, annual rate

800

Jul. TB

700

Total ex. Mexico and Canada

600

500
Total

400
United Kingdom

2
300

Euro Area

200
1

100
0
-100
2012

2013

2014

2015

2016

0
2015

2016

2017

2018

2019

Source: Baker, Bloom, and Davis, 2016.
*Mean and Std. Dev. calculated from January 2001-August 2016.

* Weighted by bilateral shares in U.S. merchandise exports.

3. Consumer Prices

4. Long-Term Inflation Compensation*
4-quarter percent change

Percent

United States

United
Kingdom

3
Canada

Euro area

2
Euro area
Japan*

Japan
1

0
0

-1

-1
2012

2014

2016

2018

* Excluding effect of consumption tax hikes.

-2
2008

2010

2012

2014

* 5-year, 5-year forward derived from inflation swaps.

5. Euro-Area NFC Loans*

2016

6. German and Japanese Yield Curves
Interest Rate, Percent

Periphery

Percent

Current (as of Sept 16, 2016)
January 15, 2014

Germany

1
Japan

Core

1
2008

2010

2012

* Loans to non-financial corporations.

2014

2016

15
Maturity (Years)

-1

September 20-21, 2016

Authorized for Public Release

196 of 216

Exhibit 2 (Last)

Class II FOMC - Restricted (FR)

The International Outlook (2)
2. Policy Interest Rates

1. Loan-Deposit Spreads
Percentage points

Percent

2.5

3.5
3.0

Federal Reserve

2.0

2.5
2.0

Germany

1.5
1.5
Bank of Canada

1.0
Bank of England

1.0

Japan

0.0
Bank of Japan
European Central Bank

-0.5

0.5
2010

2012

2014

-1.0
2015

2016

3. Holders of Japanese Government Debt*

2016

2017

2018

2019

4. Euro-Area Corporate Bond Spreads*
Basis points
200
CSPP
Announcement
175

Banks
(incl. Japan Post)

Bank of Japan
BBB-rated

21%

150

37%
Foreigners

0.5

125

11%

100

75
25%

Social Security
fund

Households

A-rated
Insurance and
private pension

25
0
2013

*Includes JGBs and T-bills at 2016:Q1.

2014

2015

2016

* Relative to the 5-year German Bond yield.

5. Chinese Exchange Rates

6. Real Dollar Indexes

December 31, 2014 = 100 RMB/USD (inverted scale)
Jul TB

105

2014:Q1 = 100
6.0

135

Jul. TB
130
AFE

RMB
Appreciation
100

RMB/USD

125
6.5

Broad

120
115
110

Currency
Basket*

EME

7.0

105
Dollar
appreciation

100

7.5
2014

2015

2016

2017

2018

2019

* China Foreign Exchange Trade System (nominal exchange rate basket)

95
2014

2015

2016

2017

2018

2019

September 20-21, 2016

Authorized for Public Release

Appendix 6: Materials used by Ms. Klee

197 of 216

September 20-21, 2016

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Class I FOMC – Restricted Controlled (FR)

Material for Briefing on the

Summary of Economic Projections

Elizabeth Klee

September 20, 2016

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September 20-21, 2016

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Class I FOMC – Restricted Controlled (FR)
Exhibit 1. Medians, central tendencies, and ranges of economic projections, 2016–19 and over the longer run
Percent

Change in real GDP
Median of projections
Central tendency of projections
Range of projections

Actual

2011

2012

2013

2014

2015

2016

2017

2018

2019

Longer
run
Percent

Unemployment rate

9
8
7
6
5
4

2011

2012

2013

2014

2015

2016

2017

2018

2019

Longer
run
Percent

PCE inflation
3

2011

2012

2013

2014

2015

2016

2017

2018

2019

Longer
run
Percent

Core PCE inflation
3

2011

2012

2013

2014

2015

2016

2017

2018

2019

Longer
run

Note: The data for the actual values of the variables are annual. The percent changes in real GDP and inflation
are measured Q4/Q4. Projections for the unemployment rate are for the average civilian unemployment rate in the
fourth quarter of the year indicated. One participant did not submit longer-run projections for the change in real GDP
or the unemployment rate.

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Class I FOMC – Restricted Controlled (FR)
Exhibit 2. Economic projections for 2016–19 and over the longer run (percent)

Change in real GDP
2016
Median . . . . . . . . . . . . . . . . . .
1.8
June projection . . . . . .
2.0
Range . . . . . . . . . . . . . . . . . . . 1.7 – 2.0
June projection . . . . . . 1.8 – 2.2
Memo: Tealbook** . . . . . .
1.7
June projection . . . . . .
1.9

2017

2018

2019

2.0
2.0
1.6 – 2.5
1.6 – 2.4
2.4
2.4

2.0
2.0
1.5 – 2.3
1.5 – 2.2
2.0
2.1

1.8
n.a.
1.6 – 2.2
n.a.
1.7
1.6

Longer
run
1.8
2.0
1.6 – 2.2
1.6 – 2.4
1.7
1.9

Unemployment rate
2016
Median . . . . . . . . . . . . . . . . . .
4.8
June projection . . . . . .
4.7
Range . . . . . . . . . . . . . . . . . . . 4.7 – 4.9
June projection . . . . . . 4.5 – 4.9
Memo: Tealbook . . . . . . . .
4.9
June projection . . . . . .
4.8

2017

2018

2019

4.6
4.6
4.4 – 4.8
4.3 – 4.8
4.5
4.5

4.5
4.6
4.3 – 4.9
4.3 – 5.0
4.3
4.3

4.6
n.a.
4.2 – 5.0
n.a.
4.2
4.3

Longer
run
4.8
4.8
4.5 – 5.0
4.6 – 5.0
5.0
5.0

PCE infation
2016
1.3
Median . . . . . . . . . . . . . . . . . .
1.4
June projection . . . . . .
Range . . . . . . . . . . . . . . . . . . . 1.1 – 1.7
June projection . . . . . . 1.3 – 2.0
Memo: Tealbook . . . . . . . .
1.2
June projection . . . . . .
1.3

2017

2018

2019

1.9
1.9
1.5 – 2.0
1.6 – 2.0
1.6
1.7

2.0
2.0
1.8 – 2.0
1.8 – 2.1
1.8
1.8

2.0
n.a.
1.8 – 2.1
n.a.
1.9
1.9

Longer
run
2.0
2.0
2.0
2.0
2.0
2.0

Core PCE infation
2016
Median . . . . . . . . . . . . . . . . . .
1.7
June projection . . . . . .
1.7
Range . . . . . . . . . . . . . . . . . . . 1.5 – 2.0
June projection . . . . . . 1.3 – 2.0
Memo: Tealbook . . . . . . . .
1.6
June projection . . . . . .
1.6

2017

2018

2019

1.8
1.9
1.6 – 2.0
1.6 – 2.0
1.6
1.6

2.0
2.0
1.8 – 2.0
1.8 – 2.1
1.8
1.8

2.0
n.a.
1.8 – 2.1
n.a.
1.9
1.9

* The percent changes in real GDP and infation are measured Q4/Q4. Projections for the unemployment rate are
for the average civilian unemployment rate in the fourth quarter of the year indicated. One participant did not submit
longer-run projections in conjunction with the June 14–15, 2016, meeting. For the September 20–21, 2016, meeting, one
participant did not submit longer-run projections for the change in real GDP, the unemployment rate, or the federal
funds rate.
** The updated September Tealbook value for 2016 is reported here.

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Class I FOMC – Restricted Controlled (FR)
Exhibit 3. Overview of FOMC participants’ assessments of appropriate monetary policy
Percent

September projections
Target federal funds rate or midpoint of target range at yearend

5.0

September projections
Median prescription based on Taylor (1999) rule
Median of projections

4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

2016

2017

2018

2019

Longer run

Percent

June projections
Target federal funds rate or midpoint of target range at yearend

5.0

June projections
Median prescription based on Taylor (1999) rule
Median of projections

4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

2016

2017

2018

2019

Longer run

Note: In the two panels above, each circle indicates the value (rounded to the nearest 1/8 percentage point) of
an individual participant’s judgment of the midpoint of the appropriate target range for the federal funds rate or the
appropriate target level for the federal funds rate at the end of the specifed calendar year or over the longer run. The
red diamonds for each year represent the median of the federal funds rate prescriptions that were derived by taking each
participant’s projections for the unemployment gap, core PCE infation and longer-run nominal federal funds rate for
that year and inserting them into the non-inertial Taylor (1999) rule. The whiskers represent the central tendency of
the prescriptions of the non-intertial Taylor (1999) rule using participants’ projections. One participant did not submit
longer-run projections for the federal funds rate in conjunction with the June 14–15, 2016, meeting. One participant did
not submit longer-run projections for the federal funds rate in conjunction with the September 20–21, 2016, meeting.

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Class I FOMC – Restricted Controlled (FR)
Exhibit 4. Comparison of medians of projections: September 2015 SEP versus September 2016 SEP
Percent

Change in real GDP
September 2015 median projections
September 2016 median projections

2016

2017

2018

2019

Longer run
Percent

Unemployment rate
September 2015 median projections
September 2016 median projections

2016

2017

2018

2019

Longer run
Percent

PCE inflation
September 2015 median projections
September 2016 median projections

2016

2017

2018

2019

Longer run
Percent

Federal funds rate
September 2015 median projections
September 2016 median projections

4
3
2
1

2016

2017

2018

2019

Longer run

Note: Projections for 2019 were not collected in the September 2015 SEP. For the September 20–21, 2016, meeting,
one participant did not submit longer-run projections for the change in real GDP, the unemployment rate, or the federal
funds rate.

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Class I FOMC – Restricted Controlled (FR)
Exhibit 5. Uncertainty and risks in economic projections

Number of participants

Uncertainty about GDP growth

Risks to GDP growth

September projections
June projections

Lower

Broadly
similar

Number of participants

September projections
June projections

18
16
14
12
10
8
6
4
2

Higher

Weighted to
downside

Broadly
balanced

Number of participants

Uncertainty about the unemployment rate

18
16
14
12
10
8
6
4
2

Weighted to
upside
Number of participants

Risks to the unemployment rate
18
16
14
12
10
8
6
4
2

Lower

Broadly
similar

18
16
14
12
10
8
6
4
2

Higher

Weighted to
downside

Broadly
balanced

Number of participants

Uncertainty about PCE inflation

Weighted to
upside
Number of participants

Risks to PCE inflation
18
16
14
12
10
8
6
4
2

Lower

Broadly
similar

18
16
14
12
10
8
6
4
2

Higher

Weighted to
downside

Broadly
balanced

Number of participants

Uncertainty about core PCE inflation

Weighted to
upside
Number of participants

Risks to core PCE inflation
18
16
14
12
10
8
6
4
2

Lower

Broadly
similar

Higher

18
16
14
12
10
8
6
4
2

Weighted to
downside

Page 5 of 5

Broadly
balanced

Weighted to
upside

September 20-21, 2016

Authorized for Public Release

Appendix 7: Materials used by Mr. Laubach

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September 20-21, 2016

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Class I FOMC – Restricted Controlled (FR)

Material for the Briefing on

Monetary Policy Alternatives

Thomas Laubach

September 20-21, 2016

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Exhibit 1: SEP−implied Neutral Real Rates
Estimates of Time−varying r* Implied by
Participants’ Projections

SEP Median Projections for the Fed Funds Rate
Percent

Sept. 2016
Sept. 2015

IS equation relates the unemployment gap to the
real interest gap as follows:
4

(ut − u*t ) = α × (ut−1 − u*t−1) + β × (rt−1 − r*t−1)
Estimate coefficients α and β using data from the
4th quarter of each year, staff’s estimate of u*,
and Laubach−Williams estimates of r*

2
Insert participants’ estimates of the longer−run
unemployment rate and projections for the
unemployment rate and real federal funds rate to
solve for their implied time−varying r*.

2016

2017

2018

2019

Note: Circles represent LR estimates.
Source: Sept. 2016 and Sept. 2015 SEPs.

SEP Projected r*: Implicit Year−End and Longer−
Run Equilibrium Real Interest Rate
Percent

SEP Projected r−r*: Implicit Year−End Real
Interest Rate Gap
Percent
3.5

Median path

3.5

Median path

2.5

1.5

0.5

−0.5

−1.5

−2.5
2016

2017

2018

2019

2016

Note: 2019 values assume that participants’ projections for the unemployment
rate in 2020 are equal to their 2019 values, and that core PCE is equal
to 2 percent by year−end 2020.
Source: Sept. SEP.

Median r* Paths

−2.5

Percent

June 2016
Sept. 2015

2017

2018

2019

Policy Implications
2.5
2.0
1.5
1.0
0.5

Alternative C: Confident to achieve
economic outcomes with an increase at
this meeting; important to start
narrowing real rate gap
Alternative A: r* is low, likely to
remain low for some time; convey no rush
to remove accommodation

0.0
−0.5
−1.0
2016

2017

2018

2019

−1.5

Note: Circles represent LR estimates.
Source: Sept. 2015 and Sept. 2016 SEPs.

Page 1 of 11

Alternative B: Don’t need much additional
evidence to raise rates, but waiting for
further evidence appropriate in light of
successive downward revisions to r*

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JULY 2016 FOMC STATEMENT
1. Information received since the Federal Open Market Committee met in June indicates
that the labor market strengthened and that economic activity has been expanding at a
moderate rate. Job gains were strong in June following weak growth in May. On
balance, payrolls and other labor market indicators point to some increase in labor
utilization in recent months. Household spending has been growing strongly but
business fixed investment has been soft. Inflation has continued to run below the
Committee’s 2 percent longer-run objective, partly reflecting earlier declines in
energy prices and in prices of non-energy imports. Market-based measures of
inflation compensation remain low; most survey-based measures of longer-term
inflation expectations are little changed, on balance, in recent months.
2. Consistent with its statutory mandate, the Committee seeks to foster maximum
employment and price stability. The Committee currently expects that, with gradual
adjustments in the stance of monetary policy, economic activity will expand at a
moderate pace and labor market indicators will strengthen. Inflation is expected to
remain low in the near term, in part because of earlier declines in energy prices, but to
rise to 2 percent over the medium term as the transitory effects of past declines in
energy and import prices dissipate and the labor market strengthens further. Nearterm risks to the economic outlook have diminished. The Committee continues to
closely monitor inflation indicators and global economic and financial developments.
3. Against this backdrop, the Committee decided to maintain the target range for the
federal funds rate at ¼ to ½ percent. The stance of monetary policy remains
accommodative, thereby supporting further improvement in labor market conditions
and a return to 2 percent inflation.
4. In determining the timing and size of future adjustments to the target range for the
federal funds rate, the Committee will assess realized and expected economic
conditions relative to its objectives of maximum employment and 2 percent inflation.
This assessment will take into account a wide range of information, including
measures of labor market conditions, indicators of inflation pressures and inflation
expectations, and readings on financial and international developments. In light of
the current shortfall of inflation from 2 percent, the Committee will carefully monitor
actual and expected progress toward its inflation goal. The Committee expects that
economic conditions will evolve in a manner that will warrant only gradual increases
in the federal funds rate; the federal funds rate is likely to remain, for some time,
below levels that are expected to prevail in the longer run. However, the actual path
of the federal funds rate will depend on the economic outlook as informed by
incoming data.
5. The Committee is maintaining its existing policy of reinvesting principal payments
from its holdings of agency debt and agency mortgage-backed securities in agency
mortgage-backed securities and of rolling over maturing Treasury securities at
auction, and it anticipates doing so until normalization of the level of the federal
funds rate is well under way. This policy, by keeping the Committee’s holdings of
longer-term securities at sizable levels, should help maintain accommodative
financial conditions.
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SEPTEMBER 2016 ALTERNATIVE A
1. Information received since the Federal Open Market Committee met in June July
indicates that the labor market strengthened has continued to strengthen and that
growth of economic activity has been expanding at a moderate rate has picked up
from the modest pace seen in the first half of this year. Job gains were strong in
June following weak growth in May. On balance, payrolls and have been solid in
recent months, on average, but other labor market indicators, including the
unemployment rate, point to some increase little change in labor utilization in
recent months. Household spending has been growing strongly but business fixed
investment has been remained soft. Inflation has continued to run below the
Committee’s 2 percent longer-run objective, only partly reflecting earlier declines in
energy prices and in prices of non-energy imports. Market-based measures of
inflation compensation remain low; most survey-based measures of longer-term
inflation expectations are little changed, on balance, in recent months.
2. Consistent with its statutory mandate, the Committee seeks to foster maximum
employment and price stability. The Committee currently expects that, with gradual
adjustments in the appropriate stance of monetary policy, economic activity will
expand at a moderate pace and labor market indicators conditions will strengthen
further. Inflation is expected to remain low in the near term, in part because of
earlier declines in energy prices, but to rise gradually to 2 percent over the medium
term as the transitory effects of past declines in energy and import prices dissipate
and the labor market strengthens further. Near-term risks to the economic outlook
have diminished. The Committee continues to closely monitor inflation indicators
and global economic and financial developments.
3. Against this backdrop, the Committee decided to maintain the target range for the
federal funds rate at ¼ to ½ percent. The stance of monetary policy remains
accommodative, thereby supporting further improvement in labor market conditions
and a return to 2 percent inflation. The Committee judges that an increase in the
target range will not be warranted until inflation moves closer to 2 percent on a
sustained basis.
4. In determining the timing and size of future when adjustments to the target range for
the federal funds rate might become appropriate, the Committee will assess realized
and expected economic conditions relative to its objectives of maximum employment
and 2 percent inflation, along with risks to the economic outlook. This assessment
will take into account a wide range of information, including measures of labor
market conditions, indicators of inflation pressures and inflation expectations, and
readings on financial and international developments. In light of the current shortfall
of inflation from 2 percent, the Committee will carefully monitor actual and expected
progress toward its inflation goal. The Committee expects that economic conditions
will evolve in a manner that will warrant only gradual increases in the federal funds
rate; the federal funds rate is likely to remaining, for some time, below levels that are
expected to prevail in the longer run. However, the actual path of the federal funds
rate will depend on the economic outlook as informed by incoming data.

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5. The Committee is maintaining its existing policy of reinvesting principal payments
from its holdings of agency debt and agency mortgage-backed securities in agency
mortgage-backed securities and of rolling over maturing Treasury securities at
auction, and it anticipates doing so until normalization of the level of the federal
funds rate is well under way. This policy, by keeping the Committee’s holdings of
longer-term securities at sizable levels, should help maintain accommodative
financial conditions.

Page 4 of 11

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SEPTEMBER 2016 ALTERNATIVE B
1. Information received since the Federal Open Market Committee met in June July
indicates that the labor market strengthened has continued to strengthen and that
growth of economic activity has been expanding at a moderate rate has picked up
from the modest pace seen in the first half of this year. Although the
unemployment rate is little changed in recent months, job gains were strong in
June following weak growth in May have been solid, on average. On balance,
payrolls and other labor market indicators point to some increase in labor utilization
in recent months. Household spending has been growing strongly but business fixed
investment has been remained soft. Inflation has continued to run below the
Committee’s 2 percent longer-run objective, partly reflecting earlier declines in
energy prices and in prices of non-energy imports. Market-based measures of
inflation compensation remain low; most survey-based measures of longer-term
inflation expectations are little changed, on balance, in recent months.
2. Consistent with its statutory mandate, the Committee seeks to foster maximum
employment and price stability. The Committee currently expects that, with gradual
adjustments in the stance of monetary policy, economic activity will expand at a
moderate pace and labor market indicators conditions will strengthen somewhat
further. Inflation is expected to remain low in the near term, in part because of
earlier declines in energy prices, but to rise to 2 percent over the medium term as the
transitory effects of past declines in energy and import prices dissipate and the labor
market strengthens further. Near-term risks to the economic outlook have diminished
appear roughly balanced. The Committee continues to closely monitor inflation
indicators and global economic and financial developments.
3. Against this backdrop, the Committee decided to maintain the target range for the
federal funds rate at ¼ to ½ percent. The Committee judges that the case for an
increase in the federal funds rate has strengthened but decided, for the time
being, to wait for further evidence of continued progress toward its objectives.
The stance of monetary policy remains accommodative, thereby supporting further
improvement in labor market conditions and a return to 2 percent inflation.
4. In determining the timing and size of future adjustments to the target range for the
federal funds rate, the Committee will assess realized and expected economic
conditions relative to its objectives of maximum employment and 2 percent inflation.
This assessment will take into account a wide range of information, including
measures of labor market conditions, indicators of inflation pressures and inflation
expectations, and readings on financial and international developments. In light of
the current shortfall of inflation from 2 percent, the Committee will carefully monitor
actual and expected progress toward its inflation goal. The Committee expects that
economic conditions will evolve in a manner that will warrant only gradual increases
in the federal funds rate; the federal funds rate is likely to remain, for some time,
below levels that are expected to prevail in the longer run. However, the actual path
of the federal funds rate will depend on the economic outlook as informed by
incoming data.

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SEPTEMBER 2016 ALTERNATIVE C
1. Information received since the Federal Open Market Committee met in June July
indicates that the labor market strengthened has continued to strengthen and that
growth of economic activity has been expanding at a moderate rate has picked up
from the modest pace seen in the first half of this year. Although the
unemployment rate is little changed in recent months, job gains were strong in
June following weak growth in May have been solid, on average. On balance,
payrolls and other labor market indicators point to some increase in labor utilization
in recent months. Household spending has been growing strongly but business fixed
investment has been remained soft. Inflation has continued to run below the
Committee’s 2 percent longer-run objective, partly reflecting earlier declines in
energy prices and in prices of non-energy imports. Market-based measures of
inflation compensation remain low; most survey-based measures of longer-term
inflation expectations are little changed, on balance, in recent months.
2. Consistent with its statutory mandate, the Committee seeks to foster maximum
employment and price stability. The Committee currently expects that, with gradual
adjustments in the stance of monetary policy, economic activity will expand at a
moderate pace and labor market indicators conditions will strengthen somewhat
further. Inflation is expected to remain low in the near term, in part because of
earlier declines in energy prices, but to rise to 2 percent over the medium term as the
transitory effects of past declines in energy and import prices dissipate and the labor
market strengthens further. Near-term risks to the economic outlook have diminished
appear balanced. The Committee continues to closely monitor inflation indicators
and global economic and financial developments.
3. Against this backdrop In view of realized and projected progress toward
maximum employment and 2 percent inflation, the Committee decided to maintain
raise the target range for the federal funds rate at ¼ to ½ to ¾ percent. The stance of
monetary policy remains accommodative after this increase, thereby supporting
[ some ] further improvement strengthening in labor market conditions and a return
to 2 percent inflation.
4. In determining the timing and size of future adjustments to the target range for the
federal funds rate, the Committee will assess realized and expected economic
conditions relative to its objectives of maximum employment and 2 percent inflation,
along with risks to the outlook. This assessment will take into account a wide range
of information, including measures of labor market conditions, indicators of inflation
pressures and inflation expectations, and readings on financial and international
developments. In light of the current shortfall of inflation from 2 percent, the
Committee will carefully monitor actual and expected progress toward its inflation
goal. The Committee expects that economic conditions will evolve in a manner that
will warrant only gradual increases in the federal funds rate; the federal funds rate is
likely to remain, for some time, below levels that are expected to prevail in the longer
run. However, the actual path of the federal funds rate will depend on the economic
outlook as informed by incoming data.

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Implementation Note if the Committee maintains the current target range
Release Date: July 27 September 21, 2016
Decisions Regarding Monetary Policy Implementation
The Federal Reserve has made the following decisions to implement the monetary policy stance
announced by the Federal Open Market Committee in its statement on July 27 September 21,
2016:
•

The Board of Governors of the Federal Reserve System left unchanged the interest rate
paid on required and excess reserve balances at 0.50 percent.

•

As part of its policy decision, the Federal Open Market Committee voted to authorize and
direct the Open Market Desk at the Federal Reserve Bank of New York, until instructed
otherwise, to execute transactions in the System Open Market Account in accordance
with the following domestic policy directive:
“Effective July 28 September 22, 2016, the Federal Open Market Committee directs
the Desk to undertake open market operations as necessary to maintain the federal
funds rate in a target range of ¼ to ½ percent, including overnight reverse repurchase
operations (and reverse repurchase operations with maturities of more than one day
when necessary to accommodate weekend, holiday, or similar trading conventions) at
an offering rate of 0.25 percent, in amounts limited only by the value of Treasury
securities held outright in the System Open Market Account that are available for
such operations and by a per-counterparty limit of $30 billion per day.
The Committee directs the Desk to continue rolling over maturing Treasury securities
at auction and to continue reinvesting principal payments on all agency debt and
agency mortgage-backed securities in agency mortgage-backed securities. The
Committee also directs the Desk to engage in dollar roll and coupon swap
transactions as necessary to facilitate settlement of the Federal Reserve’s agency
mortgage-backed securities transactions.”
More information regarding open market operations may be found on the Federal
Reserve Bank of New York’s website.

•

The Board of Governors of the Federal Reserve System took no action to change the
discount rate (the primary credit rate), which remains at 1.00 percent.

This information will be updated as appropriate to reflect decisions of the Federal Open Market
Committee or the Board of Governors regarding details of the Federal Reserve’s operational
tools and approach used to implement monetary policy.

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215 of 216

Implementation Note if the Committee raises the target range to ½ to ¾ percent
Release Date: July 27 September 21, 2016
Decisions Regarding Monetary Policy Implementation
The Federal Reserve has made the following decisions to implement the monetary policy stance
announced by the Federal Open Market Committee in its statement on July 27 September 21,
2016:
•

The Board of Governors of the Federal Reserve System left unchanged voted
[ unanimously ] to raise the interest rate paid on required and excess reserve balances at
0.50 to 0.75 percent, effective September 22, 2016.

•

As part of its policy decision, the Federal Open Market Committee voted to authorize and
direct the Open Market Desk at the Federal Reserve Bank of New York, until instructed
otherwise, to execute transactions in the System Open Market Account in accordance
with the following domestic policy directive:
“Effective July 28 September 22, 2016, the Federal Open Market Committee directs
the Desk to undertake open market operations as necessary to maintain the federal
funds rate in a target range of ¼ to ½ to ¾ percent, including overnight reverse
repurchase operations (and reverse repurchase operations with maturities of more
than one day when necessary to accommodate weekend, holiday, or similar trading
conventions) at an offering rate of 0.25 0.50 percent, in amounts limited only by the
value of Treasury securities held outright in the System Open Market Account that
are available for such operations and by a per-counterparty limit of $30 billion per
day.
The Committee directs the Desk to continue rolling over maturing Treasury securities
at auction and to continue reinvesting principal payments on all agency debt and
agency mortgage-backed securities in agency mortgage-backed securities. The
Committee also directs the Desk to engage in dollar roll and coupon swap
transactions as necessary to facilitate settlement of the Federal Reserve’s agency
mortgage-backed securities transactions.”
More information regarding open market operations may be found on the Federal
Reserve Bank of New York’s website.

•

In a related action, the Board of Governors of the Federal Reserve System took no
action to change voted [ unanimously ] to approve a ¼ percentage point increase in
the discount rate (the primary credit rate) , which remains at 1.00 to 1.25 percent,
effective September 22, 2016. In taking this action, the Board approved requests
submitted by the Boards of Directors of the Federal Reserve Banks of …

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September 20-21, 2016

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Full text of Federal Open Market Committee Meeting Minutes, Transcripts, and Other Documents : Meeting, September 20-21, 2016 : Presentation Materials

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