Federal Reserve officials engaged in a detailed debate about inflation while keeping the door open for a September announcement on the timing of balance-sheet reductions, according to minutes from their policy meeting in July.
With inflation slipping in recent months and not hitting the Federal Reserve’s 2% target in years, Federal Reserve Bank of Atlanta President Raphael Bostic urged a “wait and see” approach on rate hikes in a televised interview Wednesday.
Federal Reserve Bank of New York President William Dudley said it isn’t unreasonable to expect the central bank to announce plans in September to start trimming its balance sheet and said he supports another interest-rate increase this year if the economy evolves as he expects.
Noting that predictions of higher inflation have been wrong for years, Federal Reserve Bank of Minneapolis President Neel Kashkari said Friday, the Fed can afford to wait to raise rates and that’s why he’s dissented on the last two rate hikes.
Federal Reserve Bank of New York President William Dudley offered a positive outlook for the U.S. economy, job market and inflation on Thursday, saying better conditions would help support the most vulnerable Americans.
Federal Reserve Bank of St. Louis President James Bullard said Janet Yellen’s successor should consider holding press conference after every policy meeting, if she isn’t picked for a second term at the helm of the U.S. central bank.
Chicago Fed President Charles Evans said it would be “reasonable” to announce the roll-off of the central bank’s balance sheet next month, while cautioning that disappointing inflation data may delay interest-rate increases as technological disruption dampens price pressures.