Speeches, Interviews, Essays

“If my first explanation of the enduring high inflation noted above is right (that it will still prove transitory but take much longer than expected), then I believe the FOMC will need to remove accommodation and get modestly above neutral while the inflationary dynamics unwind. However, if my second explanation noted above is right (that…

“To close, I want to talk about what I’ll be keeping an eye on in the coming months: demand, supply and pricing. While I think all three of these areas should normalize, there are still unanswered questions. Demand should calm as rates increase, excess savings are spent, and we work through the current oil price…

“In addition, in my contribution to the Summary of Economic Projections, I recommended that the Committee try to achieve a level of the policy rate above 3% this year. This would quickly adjust the policy rate to a more appropriate level for the current circumstances. The Committee has successfully moved in this manner before. In…

“The Fed’s monetary policy actions have been guided by our mandate to promote maximum employment and stable prices for the American people. Our policy has been adapting to the evolving economic environment, and it will continue to do so. As I noted, the Committee raised the target range for the federal funds rate by ¼…

Transcript not available (link to interview provided). https://www.cnbc.com/2022/03/04/chicago-feds-charles-evans-cautions-on-inflations-hit-to-small-businesses.html

Transcript not available (link to interview provided). https://www.cnbc.com/video/2022/03/03/uncertainty-around-world-doesnt-change-need-to-curb-u-s-inflation-says-cleveland-fed-president.html

“Inflation has become the focus of conversation. But in its shadow — and partially pulling the strings — is tightness in the labor market. Employers continue to struggle to bring in new workers and keep existing ones. Job openings far outnumber individuals looking for work. Absenteeism is elevated due to COVID-19. Jobs are still down…

Bullard noted that U.S. inflation “has surprised substantially to the upside” in an environment where measures of real economic activity and labor market performance are, despite geopolitical risks, expected to remain robust. There has been an initial, implicit U.S. monetary policy response to the ongoing inflation shock, he said, and this response is already reflected…

“In summary, Treasury principal payments in coming years will be much larger and more variable than they were following the LSAP programs.  MBS principal payments will likely be modestly larger and are subject to considerable uncertainty.  The FOMC has not decided on its plans for reducing the size of the balance sheet.  However, the minutes…

“The process of removing policy accommodation in current circumstances will involve both increases in the target range of the federal funds rate and reduction in the size of the Federal Reserve’s balance sheet. As the FOMC noted in January, the federal funds rate is our primary means of adjusting the stance of monetary policy. Reducing…