Monetary policy

Tax reform strengthened Federal Reserve officials' outlook for economic growth as they expect tax cuts to boost consumer and business spending.

It’s a powerful position so the stakes are high, and the appointment will come amid broader changes in Fed leadership.

At least two economists have been interviewed for the position of Federal Reserve vice chair, last held by Stanley Fischer, who resigned earlier this year, according to reports.

President Donald Trump will nominate Jerome Powell again to serve as the chair of the Federal Reserve after the Senate adjourned Thursday without voting to confirm him, White House spokeswoman Natalie Strom said.

Federal Reserve Bank of Dallas President Robert Kaplan joined other policy makers in cautioning that a flattening yield curve could be sending a warning signal on the U.S. economy that could inhibit the central bank’s room to maneuver.

Low inflation plus a flattening yield curve led to Minneapolis Fed President Neel Kashkari voting against a rate hike.

Concern that “persistent factors” rather than “transitory ones” could be keeping inflation low pushed Federal Reserve Bank of Chicago President Charles L. Evans to dissent on the Federal Open Market Committee vote on the federal funds rate Wednesday.

A gradual path of rate increases is likely to remain warranted, Federal Reserve Board Chair Janet Yellen reiterated Wednesday, noting that she is “personally concerned” about U.S. debt level.

The Federal Open Market Committee raised the federal funds target rate 25 basis points to a range of 1.25% to 1.50%, the Fed announced Wednesday.

The Fed plans to raise rates in December and three times next year. Mary Ann Hurley, vice president of fixed income trading at D.A. Davidson & Co., warns this could invert the yield curve, which often signals recession.