Monetary policy

Most Federal Reserve officials judged “it would soon be appropriate” to tighten monetary policy again and backed a plan that would gradually shrink their $4.5 trillion balance sheet.

The June Federal Open Market Committee meeting should be live, Federal Reserve Bank of Philadelphia President Patrick Harker said.

Having a positive view of the economy, Federal Reserve Bank of Philadelphia President and CEO Patrick T. Harker said Friday he expects two more rate increases this year.

Federal Reserve Bank of Chicago President Charles Evans said his outlook hasn’t changed much.

The Federal Reserve is on track to begin unwinding its balance sheet this year or next, although U.S. central bankers are not in a rush to tighten and will take care to ensure their actions don’t trigger disruptions that harm the global economy, Federal Reserve Bank of New York President William Dudley said.

After the next rate hike, the Federal Reserve should consider “a very gradual normalization” of its balance sheet, Federal Reserve Bank of Boston President and CEO Eric S. Rosengren said Wednesday.

Tapering of the Federal Reserve’s balance sheet won’t sink the mortgage-backed securities market, said Boston Fed President Eric Rosengren, though prices may have to adjust.

The Federal Reserve should begin shrinking its balance sheet this year and put the reductions “on autopilot,” Federal Reserve Bank of Kansas City President and CEO Esther L. George said Tuesday.

If the economy grows as expected, further rate hikes will be necessary, although they should be gradual, not one every Federal Open Market Committee meeting, Federal Reserve Bank of Cleveland President and CEO Loretta J. Mester said Monday.

The fed funds rate target is not far from the appropriate level, given the low natural rate of interest, Federal Reserve Bank of St. Louis President James Bullard said Monday.

Federal Reserve Bank of San Francisco President John Williams said his outlook hasn’t changed: he still expects three or four rate hikes and the beginning of reducing the Fed balance sheet to begin later this year.

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.