Monetary policy

Federal Reserve Chairman Jerome Powell said the central bank can continue gradually raising interest rates as the outlook for growth remains strong, and the recent bout of financial volatility shouldn’t weigh on the U.S. economy.

Federal Reserve Governor Randal Quarles offered an optimistic view of the U.S. economy, suggesting it may be on the cusp of a sustained period of faster growth and reaffirming his support for “gradual” interest-rate increases.

Monetary policy targeting a federal funds rate between 1.25% and 1.5% is appropriate, Federal Reserve Bank of St. Louis President James Bullard said Monday.

Volume of $48.05 billion indicated a strong short-term need on both the buy-side and sell side of the municipal market.

With the Federal Reserve’s monetary policy report sticking to the policies professed in its latest post-meeting statement, markets will look to the question and answer sessions Federal Reserve Board Chair Jerome Powell will face from Congress next week.

Although large scale asset purchase programs may not be as effective as previously believed, Federal Reserve Bank of Boston President Eric Rosengren said Friday, “it is quite likely” that the programs will be needed in the future.

Having vacancies on the Federal Reserve Board makes it “more difficult,” Federal Reserve Bank of Atlanta President Raphael Bostic said Thursday.

Federal Reserve Governor Randal Quarles delivered an upbeat assessment of the U.S. economy and endorsed a “gradual” path for raising interest rates in his first public speech on monetary policy since joining the central bank in October.

Federal Reserve officials grew more positive on the economic outlook, citing “substantial underlying economic momentum,” and were increasingly optimistic about achieving their inflation target, according to minutes of last month's policy meeting.

Calling for gradual and patient interest rate hikes, Federal Reserve Bank of Dallas President Rob Kaplan warned that three major challenges to the economy’s health must be addressed.