Monetary policy

The Fed should slow its pace of policy normalization to help re-align price expectations around 2% and maintain the credibility of its inflation target, Federal Reserve Bank of St. Louis President James Bullard said.

Federal Reserve Chairman Jerome Powell said central banks shouldn’t take their independence for granted at a time when trust in public institutions is at “historic lows,” requiring extra effort to explain both their monetary and regulatory policies.

Federal Reserve officials said the economic outlook warranted another interest-rate hike “soon” and signaled they would welcome a modest overshoot of their 2% inflation target, indicating they're in no rush to tighten more aggressively.

Federal Reserve Bank of Cleveland President Loretta Mester warned against dismantling core reforms that have made U.S. banks better able to withstand a financial crisis.

Bullard says the Fed should be sending signals that the policy rate is near or at neutral.

With only Sen. Elizabeth Warren challenging their thoughts, Fed nominees Richard Clarida and Michelle Bowman are likely to win approval from the Senate Banking Committee.

While the Federal Open Market Committee will raise interest rates a total of three or four times this year, interest rates will remain low by historical standards.

Federal Reserve Bank of Dallas President Robert Kaplan cautioned against policy actions that would push short-term borrowing costs above longer-term yields and said the U.S. central bank should move gradually with its plan to raise interest rates.

Richard Clarida, President Donald Trump’s nominee for vice chairman of the Federal Reserve, will tell U.S. lawmakers he would support policies that take a “balanced approach” to achieving the Fed’s goals of maximum employment and price stability.

Blame the U.S. central bank for the flattening the yield curve, said Federal Reserve Bank of St. Louis President James Bullard, who urged his colleagues to avoid aggressive policy tightening that would push shorter-term rates above those on longer-dated Treasuries.

Gradual rate hikes remain the best policy, and while inflation is near the Fed's target, it’s “too soon” to declare victory, Federal Reserve Bank of Cleveland President Loretta Mester said Monday.

Suggesting that the Federal Open Market Committee need not raise interest rates any time soon, Federal Reserve Bank of St. Louis President James Bullard said Friday monetary policy “is likely neutral.”

The Federal Reserve is close to meeting its dual mandate, and while he expects inflation to run higher than 2% for a while, it won’t cause the Fed to respond aggressively, Federal Reserve Bank of Atlanta President Raphael Bostic said Wednesday.

The Senate Banking, Housing, and Urban Affairs Committee will hold a hearing on May 15 on the nominations on Richard Clarida and Michelle Bowman to the Federal Reserve Board.

With a strong economy, the Federal Reserve no longer needs to provide policy accommodation, according to Federal Reserve Bank of Richmond President Thomas Barkin.

Federal Reserve Chairman Jerome Powell said financial markets have gotten the message on the U.S. central bank’s plan for gradual interest-rate increases and “should not be surprised” by its actions.

The Federal Reserve’s policy-making panel is about to get a hawkish mid-year reshuffle.

Federal Reserve Bank of Atlanta President Raphael Bostic said the central bank can accommodate an overshoot of its inflation target and he isn’t worried by the impact of oil prices rising past $70 a barrel.

Lorie Logan, a senior vice president at the New York Fed, said that she saw “virtually no chance of going back to the pre-crisis balance sheet size of $800 billion.’’

A total of 3-4 rate hikes this year remains viable, Federal Reserve Bank of San Francisco President John Williams said in a televised interview Friday.