Monetary policy

A “fragile” economy and his expectations for a “more gradual” than forecast recovery mean “fiscal- and monetary-policy stimulus are essential,” Federal Reserve Bank of Boston President Eric Rosengren said Wednesday.

Federal Reserve Vice Chairman Richard Clarida said the central bank won’t consider raising interest rates from near zero until it actually achieves 2% inflation for at least a few months as well as full employment.

The U.S. central bank’s new guidance on interest rates doesn’t preclude tightening before inflation averages 2% for some period of time, Chicago Fed President Charles Evans said.

Federal Reserve Bank of St. Louis President James Bullard said the U.S. economy has enough momentum to continue its recovery from the coronavirus slump even if Congress fails to pass additional taxpayer support.

The Fed has been chasing its 2% inflation goal since 2012 and has yet to even come close to reaching it, thanks in part, to technology and globalization.

Most panelists don't expect rates to budge in the three-year projection horizon.

Judy Shelton, President Donald Trump’s controversial nominee for the Federal Reserve Board, doesn’t yet have enough support in the Republican-controlled Senate to win confirmation, said Sen. John Thune, the chamber’s No. 2 GOP leader.

With its new policy framework in place, the Fed will decide how it can use its tools more aggressively and effectively to achieve its primary goal of increasing jobs and wage growth through a more robust economic rebound.

The dot plot will be the star of the meeting, but the coronavirus and the elections will be part of the discussion, economists say.

Everyone agrees economic recovery is underway, with much debate as to its shape and how long it will take.

Despite a positive employment report last week, Chair Powell predicted a slow recovery with COVID-19 still not under control.

Charles Evans, president of the Federal Reserve Bank of Chicago, said the economy won't be back at pre-pandemic levels until near the end of 2022.

Although there was moderate growth of activity in the economy, continued volatility and uncertainty gives some cause for concern about the overall outlook.

The Fed will have to "pivot from stabilization to accommodation" during the pandemic, Fed governor says.

The pace of recovery will not only be fragmented, but will take a lot longer than originally thought, according to Raphael Bostic, Federal Reserve Bank of Atlanta president.

Federal Reserve Vice Chair Richard Clarida left open the possibility of employing Treasury yield caps at some point in the future, though he indicated it’s not likely now and reiterated the central bank’s rejection of negative interest rates.

There isn’t any urgency for the Federal Reserve to offer more clarity on how long it will hold interest rates near zero at the moment because investors already understand the central bank won’t be tightening for a while, Minneapolis Fed President Neel Kashkari said.

Federal Reserve Board Chair Jerome Powell announced the group's new policy framework, but didn't explain why it would work.

The Federal Reserve has already given enough guidance about the likely path of interest rates at this juncture and doesn’t need to offer more, Dallas Fed President Robert Kaplan said.

Federal Reserve Chair Jerome Powell announced a new approach to monetary policy Thursday that takes a more relaxed stance on inflation and on its view of how low U.S. unemployment can go.