Speeches, Interviews, Essays

The questions and comments from the elected officials of the House were more poignant and intense than the Senate. The topics however (the banking system, regulation/oversight) were the same, while the economy and monetary policy were only mentioned in general terms at this five hour and thirty-seven-minute hearing. A transcript was not ordered for this…

“For these brief remarks, I was asked to share my thoughts on the Community Reinvestment Act (CRA), a topic of great interest to all of you and to me as well.” “As you are well aware, the Federal Reserve is working in partnership with the Office of the Comptroller of the Currency (OCC) and the…

“Furthermore, some variables are better reflections of the stance of monetary policy than others, which may result in a composite measure that doesn’t have the ideal mix. In particular, equity prices are known to be quite volatile and, at times, can move financial conditions indexes substantially. And yet, equity markets can reflect an overvaluation or…

Q&A “Beginning in November of 2021, the board… Sorry, the Federal Reserve Bank brought forward these problems to the bank (SVB) and they failed to address them in a timely way. That exposure led the firm to be highly vulnerable to a shock, and that shock came on the evening of Wednesday, March 8th, when…

“In conclusion, the Fed has a congressional mandate of maximum employment and price stability. The FOMC conducts monetary policy by setting the target range for the federal funds rate. Then, the Fed uses its monetary policy tools to implement the policy, which guides market interest rates toward the Fed’s desired setting of policy. The Fed…

Fed Funds “What’s unclear for us is how much of these banking stresses are leading to a widespread credit crunch. And then that credit crunch, you’re right, just as you said, would then slow down the economy. This is something we are monitoring very, very closely. Now, on one hand, such strains could then bring…

Excerpts from article, transcript is not available — Monetary Policy “Inflation is high. Demand hadn’t seemed to come down. And so, the case for raising was pretty clear.” “For me, the question was: Do you see such stresses happening that you felt like you really had to pull back and learn more? It felt very…

Fed Funds “There was a lot of debate. Look, this wasn’t a straightforward decision. But at the end of the day, what we decided was that there was clear signs that the banking system is sound and resilient and that the efforts that the Fed took with Treasury and the FDIC to deal with the…

Banking Crisis “I think the overall message here is that we do have macroprudential policy tools which have been deployed. They can contain financial stress while appropriate monetary policy can continue to put downward pressure on inflation. So we do have tools to do both. We’re deploying those effectively and I think we’ll be successful.”…

Speech Inflation “The process of getting inflation back down to 2 percent has a long way to go and is likely to be bumpy.” Inflation Expectations “Despite elevated inflation, longer-term inflation expectations appear to remain well anchored, as reflected in a broad range of surveys of households, businesses, and forecasters, as well as measures from…