Monetary policy

While the Federal Open Market Committee will raise interest rates a total of three or four times this year, interest rates will remain low by historical standards.

Federal Reserve Bank of Dallas President Robert Kaplan cautioned against policy actions that would push short-term borrowing costs above longer-term yields and said the U.S. central bank should move gradually with its plan to raise interest rates.

Richard Clarida, President Donald Trump’s nominee for vice chairman of the Federal Reserve, will tell U.S. lawmakers he would support policies that take a “balanced approach” to achieving the Fed’s goals of maximum employment and price stability.

Blame the U.S. central bank for the flattening the yield curve, said Federal Reserve Bank of St. Louis President James Bullard, who urged his colleagues to avoid aggressive policy tightening that would push shorter-term rates above those on longer-dated Treasuries.

Gradual rate hikes remain the best policy, and while inflation is near the Fed's target, it’s “too soon” to declare victory, Federal Reserve Bank of Cleveland President Loretta Mester said Monday.

Suggesting that the Federal Open Market Committee need not raise interest rates any time soon, Federal Reserve Bank of St. Louis President James Bullard said Friday monetary policy “is likely neutral.”

The Federal Reserve is close to meeting its dual mandate, and while he expects inflation to run higher than 2% for a while, it won’t cause the Fed to respond aggressively, Federal Reserve Bank of Atlanta President Raphael Bostic said Wednesday.

The Senate Banking, Housing, and Urban Affairs Committee will hold a hearing on May 15 on the nominations on Richard Clarida and Michelle Bowman to the Federal Reserve Board.

With a strong economy, the Federal Reserve no longer needs to provide policy accommodation, according to Federal Reserve Bank of Richmond President Thomas Barkin.

Federal Reserve Chairman Jerome Powell said financial markets have gotten the message on the U.S. central bank’s plan for gradual interest-rate increases and “should not be surprised” by its actions.