FOMC actions "have been needed, understood, and generally supported," according to Federal Reserve Bank of Cleveland President Sandra Pianalto, but future action must be watched to insure "that we don't introduce more uncertainty and create problems that hamper our ability to provide a balancing weight to our economy if needed down the road."

Monetary policy cannot solve all the economic challenges the nation faces, Pianalto said in a speech in Florida, according to prepared text released by the Fed, "Further improvement in the economy will depend on improved confidence on the part of consumers and businesses."

Fiscal policy "concerns are weighing down consumer and business confidence and holding back economic growth," she said, and this and other developments abroad, are beyond the scope of the Fed's influence.

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.