Monetary policy

San Francisco Federal Reserve Bank President Mary Daly was considered by the Biden administration for a seat on the U.S. central bank’s board and she declined, according to two people familiar with the matter.

As the Federal Open Market Committee meets to discuss monetary policy, Gary Pzegeo, head of fixed income at CIBC Private Wealth will discuss his thoughts about what will come from the meeting.

Friday’s data suggested inflation remains a problem, as the voices calling for Federal Reserve action increase.

Another round of inflows was reported from the Investment Company Institute — the 31st consecutive week — but they came in at $308 million for the week ending Oct. 6, the lowest since outflows in March.

CB President Christine Lagarde said Wednesday that inflation “is largely attributable to the reopening of the economy.”

Bond investors may not wait long to start pushing back against Federal Reserve Chair Jerome Powell’s efforts to delink the start of asset-purchase tapering from the countdown to eventual policy-rate hikes.

The members of Congress, in asking that Biden find some other, unspecified, nominee, are going against the preference of Treasury Secretary Janet Yellen, who has told Biden advisers that she wants to see Powell renominated.

Federal Reserve Chair Jerome Powell risks inflation getting out of control and his assurance that the central bank can keep it in check neglects to mention this would require traumatic surgery, said former Richmond Fed President Jeffrey Lacker.

U.S. Treasury Secretary Janet Yellen has told senior White House advisers that she supports reappointing Jerome Powell as Federal Reserve chair, according to people familiar with the matter, a move that greatly increases his chance for a second term.

Dallas Fed President Robert Kaplan said he’s open to adjusting his view that the Federal Reserve should start tapering its asset-purchase program sooner rather than later if the Delta variant persists and hurts economic progress.

Treasury Secretary Janet Yellen said that by the end of this year, monthly price changes will be running at a level consistent with the Federal Reserve’s target, even if year-over-year numbers continue to show uncomfortably high inflation.

The Federal Reserve is on track to begin increasing interest rates in 2023 if the economy performs as policy makers are projecting, Vice Chairman Richard Clarida said Wednesday.

President Joe Biden has a tough decision in choosing the next Federal Reserve chair: Play it safe by giving Jerome Powell a second term or take a chance on a liberal like Lael Brainard, who would please progressives in Congress yet potentially agitate Wall Street.

Federal Reserve Governor Christopher Waller said that if the next two monthly U.S. employment reports show continued gains, he could back an announcement soon on scaling back the central bank’s bond purchases.

Federal Reserve Board Gov. Lael Brainard staked out some different ground from Chair Jerome Powell as the policy makers await a presidential decision on who should lead the central bank in the coming four years.

Federal Reserve Bank of Minneapolis President Neel Kashkari said the spread of the Delta variant of COVID-19 could keep some Americans from looking for work, potentially harming the U.S. recovery.

Financial markets “are very well prepared” for the Federal Reserve to start tapering its massive asset-purchase program in the fall, St. Louis Fed President James Bullard said.

Ed Moya, senior market analyst for the Americas at OANDA, talks with Bond Buyer Managing Editor Gary Siegel about the upcoming FOMC meeting, inflation, the possibility of tapering and the future make-up of the Fed in a wide-ranging discussion on the economy and monetary policy. (31 minutes)

President Joe Biden said he believes the surge in U.S. inflation is temporary and that he has told Federal Reserve Chairman Jerome Powell that he respects the central bank’s independence.

Federal Reserve Bank of St. Louis President James Bullard said the central bank has met its goal of achieving “substantial further progress” on both inflation and employment, urging policy makers to move forward in reducing stimulus.