Gary Siegel

Policymakers may not wait until their mid-month meeting and could act with other central banks.

The Federal Reserve is monitoring the COVID-19 issue and its economic effects, according to a release from the central bank, attributed to Chairman Jerome Powell, released Friday.

Monetary policy levels are “roughly appropriate” and should not need alteration this year, according to Dallas Fed President Robert Kaplan.

With many economic indicators released Friday, the main takeaway is gross domestic product will struggle.

It’s unlikely Judy Shelton changed anyone’s mind but she appeared poised, confident and unshaken in defending herself and her previous statements and writings.

The temporary inversion of parts of the yield curve “are concerning” but since they’re based on coronavirus fears, the economy should keep growing and will not necessitate cuts to the fed funds rate target, analysts say.

Stifel Chief Economist Lindsey Piegza discusses why she thinks the Fed’s job is far from done, why inflation remains stubbornly below its 2% target, the inverting yield curve, consumer spending and economic growth. Gary Siegel hosts.

Federal Reserve Board Chairman Jerome Powell stuck to his message in questioning before members of the House Financial Services Committee: the economy is doing well and the Fed will stay on the sidelines unless there is a “material change” to its forecast.

The early dot plots were characterized by overly optimistic projections for gross domestic product, which were later revised down, while the projections made after 2017 have been somewhat pessimistic, but more accurate, according to research by the Federal Reserve Bank of San Francisco.

Fed chair calls the illness a downside risk that arose while others are receding.

Nonfarm productivity grew at a 1.4% pace in the fourth quarter after slipping 0.2% a quarter earlier, the Labor Department reported Thursday.

The prevailing opinion is the Federal Reserve will note the downside risks caused by the virus, won’t cut rates in March, but bets are hedged for later in the year.

With manufacturing showing expansion for the first time in six months, a new issue threatens the sector.

An economic slowdown was expected in 2019, and the data prove the prediction was correct. Now softening consumer spending could portend the need for the Federal Reserve to ease policy at some point.

Monetary policy is accommodative and will remain so this year, but with the Fed's framework review concluding, some analysts believe it will shift from a 2% symmetric inflation target to an average inflation target.

The FOMC post-meeting statement was much like the previous one, with just a minor tweak, as the fed funds target was kept at a range of 1.50% to 1.75%.

Consumers remain confident, as the consumer confidence index rose to 131.6 in January from an upwardly revised 128.2 in December, the Conference Board reported Tuesday.

Just when everyone thought there would be little drama at this week’s Federal Open Market Committee meeting, the coronavirus has infected the broader markets. Experts still say monetary policy will be immune for now.

While the fed funds rate target will remain at a range of 1.50% to 1.75% and there will be no new Summary of Economic Projections, the FOMC meeting may offer insight into areas that may become problematic and its thinking on the balance sheet, analysts suggest.

The Leading Economic Index fell 0.3% in December to 111.2, while the coincident index rose 0.1% and the lagging index dipped 0.1%, the Conference Board reported Thursday.