Federal Reserve policymakers must be flexible in responding to the economy and its risks, according to Federal Reserve Bank of Cleveland president Sandra Pianalto.

“Our economy is confronting a number of challenges as the new year begins,” Pianalto told the Association for Corporate Growth, according to prepared text of her speech, released by the Fed. “The residential real estate market still appears to be in freefall. In addition, oil prices have risen, and housing and equity prices have fallen. These factors are restraining the economy beyond the housing sector.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.