FOMC

The United States economy is healthy, according to Federal Reserve Bank of New York President William Dudley, who said he would be surprised if a recession occurred in the next couple of years.

The Federal Open Market Committee held the fed funds rate target at a range of 1.5% to 1.75% and tweaked its statement on inflation.

The Federal Open Market Committee meets this week, which means a light primary market calendar of $4.3 billion. With year-over-year core PCE seen at or near 2%, its statement will acknowledge rising inflation.

Federal Reserve officials are sounding increasingly confident they can run the U.S. economy hot without a harmful rise of inflation.

The economic outlook has not changed, Federal Reserve Board Gov. Lael Brainard said in a televised interview Friday, suggesting the Fed’s projected rate hikes are on target unless data changes require adjustment.

The Federal Reserve will need to continue raising interest rates, Federal Reserve Bank of Cleveland President Loretta Mester said.

Gary Pzegeo, head of fixed income at CIBC Atlantic Trust Private Wealth Management, discusses the changes at the Fed, including two new nominees, and what this means for monetary policy and the possibility of dynamic inflation targeting. Gary Siegel hosts.

Inflation and the unemployment rate will determine if monetary policy will need to become restrictive in the coming years, Federal Reserve Bank of New York President William Dudley said Wednesday.

New tariffs and concerns over widening trade disputes cast a shadow over the Federal Reserve’s most recent survey of U.S. businesses even as all 12 regions reported continued robust job growth with few signs of overheating.

John Williams, who takes the helm of the powerful Federal Reserve Bank of New York in June, played down risks the yield curve would become inverted as the U.S. central bank gradually raises interest rates.

U.S. President Donald Trump announced his intention to nominate Richard Clarida, a respected economist and Pacific Investment Management Co. global strategic adviser, as vice chairman of the Federal Reserve.

Federal Reserve Bank of New York President William Dudley said the central bank will stay on its gradual path of raising interest rates unless inflation moves up by “an appreciable margin.”

While trade policy poses a risk to U.S. economic growth, Federal Reserve Bank of Boston President Eric Rosengren said Friday, he would support faster rate hikes if risks are avoided and the economy gets stronger.

Federal Reserve officials leaned toward a slightly faster pace of tightening at their March meeting as their growth outlook and confidence in hitting their inflation target strengthened, according to minutes released Wednesday.

Federal Reserve Bank of Dallas President Robert Kaplan said trade issues between the U.S. and China won’t get resolved soon and warned of potential damage.

Federal Reserve Bank of Minneapolis President Neel Kashkari said he’s “sympathetic” to the need to press China to engage in fair trade, yet emphasized it’s too soon to assess the full impact of the U.S.-China trade spat on the economy.

The Federal Reserve should continue gradually raising interest rates if data on consumer prices available by the central bank’s mid-June policy meeting indicate inflation will soon reach the 2% target, Chicago Fed President Charles Evans said.

Asset valuations are stretched across a broad set of financial markets and some cryptocurrencies have witnessed “extreme volatility,” Federal Reserve Governor Lael Brainard said, though overall risks to the financial system are still low.

The federal funds rate is near neutral and the Federal Open Market Committee doesn’t need to raise rates much more, according to Federal Reserve Bank of Minneapolis President Neel Kashkari.

The Federal Reserve is facing a backlash over its lack of diversity in key positions after it emerged this weekend that John Williams, the current president of the San Francisco regional branch, is a front-runner to succeed William Dudley as head of the powerful New York Fed.