Monetary policy

With the economy recovering, now is the time to reflect on monetary policy framework and strategy and seriously consider flexible price-level targeting, Federal Reserve Bank of San Francisco President John Williams said Friday.

While policy rules have their merits, policymakers should not apply them “mechanically,” and committees offer benefits rules can’t, Federal Reserve Vice Chair Stanley Fischer said Friday.

The Federal Open Market Committee held rates at 0.75% to 1%, with no dissents, while offering no clues as to what the June meeting holds.

The Federal Reserve expectations of three rate hikes this year still stand, Federal Reserve Board Vice Chair Stanley Fischer said in a televised interview Friday.

The next Fed rate hike does not matter as much as fiscal policy, Federal Reserve Bank of Minneapolis President Neel Kashkari said Friday.

Three rate hikes remain “a good baseline,” although depending on the economy it may be more or less, Federal Reserve Bank of Dallas President Robert Kaplan said in a televised interview Thursday.

Although the U.S. has recovered nicely from the great recession, the economic growth rate must rise, Federal Reserve Board Governor Jerome H. Powell said Thursday.

Federal Reserve Vice Chairman Stanley Fischer painted a picture of a brightening global economy that can better manage the spillover of gradual monetary tightening in the U.S.

The Federal Reserve's balance sheet will probably continue to be used as a monetary policy tool in the future, Federal Reserve Bank of Boston President Eric Rosengren said.

Traders are pulling back from bets the Federal Reserve will raise interest rates in June as inflation expectations crumble.