Monetary policy

In a letter to Federal Reserve Chair Jerome Powell, the chair of the Senate Banking Committee warned that the Fed was in danger of going too far in its efforts to tame inflation.

The day after the FOMC announces its policy decision, Christian Scherrmann, U.S. Economist at DWS Group, will offer his take on the meeting, Fed Chair Powell's press conference and what comes next.

"It should at least be something we're considering at this point, but the data haven't been cooperating," Daly said Friday.

The September Federal Open Market Committee meeting may provide a turning point in monetary policy. Brendan Murphy, head of global fixed income, North America, at Insight Investment will offer his thoughts about the meeting and what to expect going forward.

"All of you who are looking for a pivot, be careful what you wish for," the chief economic adviser at Allianz SE and Gramercy Funds chairman said.

"It will take time for the full effect of tighter financial conditions to work through different sectors and to bring inflation down," Brainard said. "Monetary policy will need to be restrictive for some time to have confidence that inflation is moving back to target."

"The lack of progress thus far has me thinking much more now that we have to get to a moderately restrictive stance," he told reporters Wednesday.

John Hallacy talks with Chip Barnett about how fiscal and monetary policy is affecting the municipal bond market. He discusses recent data releases, supply forecasts and the midterm elections and the future of ESG in public finance. (20 minutes)

While a full basis point increase will be discussed, analysts see the Fed increasing 75 basis points to a 3% to 3.25% range, with a split between those who say inflation is worsening and those that believe it peaked.

Inflation will fall back down to the Federal Reserve's 2% target by early 2025, the San Francisco Fed said in a research note Friday.

"The Fed is going to need great skill and also some good luck to achieve what we sometimes call a soft landing," Yellen said.

Federal Reserve Governor Christopher Waller said he favors "another significant" increase in interest rates when the central bank meets later this month, signaling his backing for a 75 basis-point move.

"I think that we've got a good plan in place. We could very well do 75 in September," he said.

"We need to act now, forthrightly, strongly as we have been doing," Powell said Thursday in remarks at the Cato Institute's monetary policy conference.

Federal Reserve Bank of Cleveland President Loretta Mester also reiterated that she does not expect the Fed to cut rates next year, noting that policy makers need to keep inflation expectations from becoming unanchored.

The Federal Reserve needs to raise its benchmark rate above 4% by early next year and leave it there for some time to help cool inflation, Cleveland Fed President Loretta Mester reiterated on Wednesday.

Federal Reserve officials, picking up where they left off over the weekend in Jackson Hole, stressed their commitment to defeating inflation while remaining vague on how big their policy move will be next month.

Federal Reserve chair Jerome Powell said the central bank will remain aggressive in fighting inflation despite promising economic data.

Federal Reserve Bank of Minneapolis President Neel Kashkari said U.S. inflation is very high and the central bank must act to bring it back under control.

Directors at two of the Federal Reserve's 12 regional branches favored a 100-basis-point increase in the discount rate in July, minutes of discount-rate meetings show.