Monetary policy

Federal Reserve Vice Chairman Richard Clarida disputed suggestions that the central bank suffers from a “hall of mirrors” problem under which it slavishly follows financial-market expectations for monetary policy.

The suite of new monetary policy tools under consideration by the Federal Reserve are likely to have limited effectiveness in the next downturn.

Federal Reserve Governor Lael Brainard on Friday called for the adoption of new strategies by the central bank to achieve its 2% inflation goal and fight off future recessions.

Federal Reserve Vice Chairman Richard Clarida took issue with suggestions that investors expect the central bank to cut interest rates in the middle of this year as he called the economy fundamentally sound.

Luis Maizel is co-founder of LM Capital, an employee-owned minority business in California. Maizel, one of the nation’s few Mexican-born fund and income managers, says he doesn’t see a recession coming. He also looks at U.S. GDP, inflation, interest rates and credit spreads amid the uncertainty of the U.S. election and the coronavirus expansion. Chip Barnett hosts.

Little hint as to direction of future monetary policy moves.

Federal Reserve Bank of Cleveland President Loretta Mester said the impact of the coronavirus and the risk it poses to the global economy haven’t changed her forecast.

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.