Speeches, Interviews, Essays

“The innovation occurring in money and payments has the potential to alter the existing two-tier monetary system upon which current monetary policy implementation frameworks are designed. How things evolve from here is uncertain, and the impact of these innovations could be revolutionary, or more evolutionary. But imagining an environment in which new forms of private…

“We need to get the rate up to neutral, which I put at about 2.50% in nominal terms … and I see a couple of 50 basis point hikes immediately in the next couple of meetings to get there … and then we need to look around and see what else is going on ……

Transcript not available (link to interview provided). https://www.cnbc.com/2022/06/01/the-feds-mary-daly-says-rate-hikes-should-continue-until-inflation-is-tamed.html

“Well, we’ll see. Jay laid out a path for the next couple of meetings that I’m perfectly comfortable with. And when we get to the fall, I think we’re going to have a lot more information on the strength of the economy. We’re going to have a lot more information on the pace of inflation.…

“Before the pandemic, at the end of 2019: The U.S. economy was growing at 2.6%, the headline PCE inflation rate was 1.5%, and the unemployment rate was 3.6%. The policy rate associated with these outcomes was 1.55%. Policy was not expected to change much going forward. Accordingly, the 2-year Treasury yield was 1.61%. Longer-term rates…

“The ON RRP facility has broadened the set of our counterparties and diversified the type of instruments on the liability side of our balance sheet. This facility has supported the control of short-term interest rates according to the FOMC’s policy direction.” “This has had profound effects on the composition of liabilities on our balance sheet.…

“I support tightening policy by another 50 basis points for several meetings. In particular, I am not taking 50 basis-point hikes off the table until I see inflation coming down closer to our 2 percent target. And, by the end of this year, I support having the policy rate at a level above neutral so…

“U.S. inflation is comparable to levels seen in 1974 and 1983.” “U.S. inflation expectations could become unmoored without credible Fed action, possibly leading to a new regime of high inflation and volatile real economic performance.” “Modern central banks are more credible than their 1970s counterparts and use forward guidance.” “Credible forward guidance means market interest…

“There’s a lot which we will miss about the old office, just like we miss its TV namesake. But flexibility is here to stay. And if we are honest with ourselves, we know we aren’t optimizing the hybrid environment today. To make it meet its full potential, we need to leverage the power of technology…

“With technology driving profound change, it is important we prepare for the financial system of the future and not limit our thinking to the financial system of today. No decision has been made about whether a U.S. central bank digital currency (CBDC) will be a part of that future, but it is important to undertake…