Fed: What did Fed officials say about the US economy and monetary policy this week
FXStreet News

Fed: What did Fed officials say about the US economy and monetary policy this week

This is the summary of the most important headlines from the Federal Reserve officials’ speeches:

The Federal Reserve Governor Michelle Bowman said in a speech on February 11:

  • She is comfortable with the current stance of monetary policy.
  • The US economy is in a good place.
  • I continue to see great jobs numbers and solid wage growth.
  • Fed’s policy is in a good place.

The Federal Reserve Chairman Jerome Powell said in a speech on February 12:

  • Powell said he does not feel the probability of recession is at all elevated.
  • Fiscal policy is more powerful, immediate than monetary policy.
  • The US unemployment is close to a 50 year low.
  • The US economy is good, but many groups are not experiencing prosperity yet.
  • The US national-level data say the economy is good.

Cleveland Federal Reserve President and the non-voting member of the rate-setting FOMC Loretta Mester said on February 13:

  • Plans will be finalized for ending balance sheet runoff and completing balance sheet normalization at coming meetings.
  • “We plan to continue to use our current operating framework for implementing monetary policy.”
  • Fed balance sheet will be larger than it was before the 2008 financial crisis.
  • Fed will make balance sheet plans and rationale known to the public in a timely way.
  • The US economy will maintain good performance in 2019, though growth will slow.
  • The US economy will make up 1st-quarter slowdown provided the US avoids the government shutdown.
  • US inflation is likely to move below 2% in the first part of the year due to lower energy prices, but trend inflation essentially at Fed target.
  • Monetary policy does not appear far behind or ahead of the curve.
  • The US economy is probably a bit beyond maximum employment.
  • Fed balance sheet roll-off has been gradual, not causing problems in markets.
  • Mester said she has not changed her baseline forecast much.
  • “We don’t have evidence of strong inflation pressures.”
  • “We’re getting close to the neutral interest rate.”

Kansas City Federal Reserve President and the voting member of the rate-setting FOMC Esther George said on February 13:

  • My support for pausing interest rate hikes was to let Fed assess the impact of past hikes.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.