Monetary policy

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.

Federal Reserve Bank of Kansas City President Esther George, who has been among the most hawkish Fed policy makers, doesn’t oppose some overshooting of the central bank’s 2% inflation target and sees more risk of price pressures being too weak than too strong.

Observers expect the Fed to use the gathering, virtual this year, to release the new monetary policy framework it's been working on.

Recent inflation data suggests an expected pickup in inflation, but economists see a different picture.

A group of former Federal Reserve officials and staffers, including former Vice Chairman Alan Blinder, published an open letter Thursday calling on the U.S. Senate to reject President Donald Trump’s nomination of Judy Shelton to the central bank’s Board of Governors.

Prospects for use seem small as participants don't see much benefit from this tool.

The U.S. economy needs more support than originally thought as a resurgence in the coronavirus pandemic weighs on growth, said Federal Reserve Bank of San Francisco President Mary Daly.

A continuation of some form of extra unemployment benefits would bolster economic growth, Federal Reserve Bank of Dallas President Robert Kaplan said.

The surging U.S. savings rate means the country can afford to support Americans laid off due to the coronavirus pandemic, while a “hard” lockdown could deliver a faster economic recovery, a senior Federal Reserve official said on Sunday.

No surprises from the Fed, not much for it to do at this point.

Two more Republican no votes will sink the nomination, if Democrats remain steadfast in their opposition.

With rates at zero lower bound, and staying there, analysts are focusing on the post-meeting statement.

Republican Sen. Mitt Romney of Utah said he will vote against Judy Shelton, one of two Trump administration nominees to the Federal Reserve’s Board of Governors.

Having people who are “outside the mainstream” on the Federal Reserve’s Board of Governors won’t create “huge amounts of problems” because they won’t set the path for monetary policy alone, former New York Federal Reserve President William Dudley said.

Without a return of inflation, rate hikes are off the table, according to Charles Evans, president of the Federal Reserve Bank of Chicago.

The U.S. central bank should consider holding off on raising interest rates until inflation is above its 2% target, Philadelphia Fed President Patrick Harker said.

Uncertainty makes downside risks prevalent, and the Fed will need to be accommodative when the crisis ends, according to Lael Brainard.

The chance of the Federal Reserve using yield curve control is probably much higher than the market currently anticipates.

The panel later this month will vote on the nomination of Judy Shelton, whose views on certain policy issues have met with skepticism from both Democrats and Republicans.

Although the recovery process from the COVID-19 stated, the economy has a long way to go.