Monetary policy

The White House is considering more than a half-dozen candidates to be the next head of the Federal Reserve, including economists and business people, with a goal of filling out a depleted board with expertise ranging from financial regulation to community banking, according to three people familiar with the matter.

New York Fed President William Dudley reiterated the need to continue raising interest rates while conceding the inflation model may be need a rethink.

Gradual rate hikes are likely to remain necessary, and the normalization of the Federal Reserve’s balance sheet should not cause a “sudden or sizable increase in long-term yields,” Federal Reserve Bank of Cleveland President Loretta Mester said Thursday.

The Senate Banking Committee voted Thursday to advance the nominations of Randal Quarles to serve as the Federal Reserve’s vice chairman for supervision and Joseph Otting to be Comptroller of the Currency, taking key steps toward President Donald Trump’s goal of reshaping regulation of Wall Street.

Federal Reserve Board Vice Chair Stanley Fischer said he will resign from the Board of Governors on or about Oct. 13.

The Federal Reserve’s rate hikes over the past year and a half may be harming the economy, Federal Reserve Bank of Minneapolis President Neel kashkari said Tuesday.

The Federal Open Market Committee must be confident inflation will rise to the 2% target before raising interest rates again, Gov. Lael Brainard said Tuesday.

Watching for the “risks of excessive optimism, leverage, and maturity transformation” can limit future financial crises, Federal Reserve Chair Janet Yellen said Friday.

Despite recent softness in economic data, especially inflation numbers, the Federal Reserve should continue to tighten monetary policy, Federal Reserve Bank of Cleveland President Loretta Mester said in a televised interview Friday.

Federal Reserve Bank of Kansas City President Esther George said if U.S. economic data hold up, there will probably be an opportunity to raise interest rates again in 2017.