Summary of recent comments from Fed officials

Federal Reserve’s chairman Jerome Powell’s comments on the US economy from October 3rd, 2018:

• We may raise rates past “neutral” territory as they need to gradually move towards normal, indicating further rates hikes are coming
• Rates are far from neutral, still accommodative

Chicago Fed President Charles Evans’ comments on the US economy and the outlook for monetary policy from October 3rd, 2018:

• Evans said he is comfortable with the expected path for expectations of a rate hike
• “I would like to see strong wage growth”
• Inflation expectations are anchored perhaps a little too well and could be higher as US fundamentals are very strong
• Fed policy to turn mildly restrictive in 2019
• Permanent tariff changes would hurt growth

Richmond Fed President Thomas Barkin’s comments on the US growth from October 3rd, 2018:

• US economic growth is solid, unemployment is low and inflation is on target  
• Fed focusing on business investment, worker compensation, durable goods prices, productivity, and the yield curve  
• “hard Brexit” or a “political crisis” are scenarios for potential shocks to the US economy

Philadelphia Fed President Patrick Harker’s comments on the US economy and the outlook for monetary policy from October 3rd, 2018:

• I could support a December increase
• Employment numbers keep surprising us
• Harker sees the US unemployment going down to 3.5% before rising

Federal Reserve’s chairman Jerome Powell’s comments on the US economy from October 2nd, 2018:

• The outlook for the US economy is “remarkably positive”
• Rates will always be the main monetary policy tool
• There is still room for US fiscal policy to support demand
• Inflation rising above target would not cause the Fed to sell assets
• Fiscal policy is providing real support to demand, but the longer-term fiscal path is not sustainable