May 26, 2011 / 9:40 PM / 8 years ago

Factbox: Fed officials' comments on the economy, policy

(Reuters) - As the Federal Reserve nears completion in June of its $600 billion bond-buying program designed to stimulate the economy, policymakers are increasingly airing their views on subsequent policy steps.

Most U.S. central bank policymakers prefer to raise benchmark interest rates before selling assets when the time comes to tighten policy, according to the minutes of the Fed’s April policy meeting.

At the same time, the April discussion did not indicate the Fed was ready to start tightening policy anytime soon.

The following are recent comments from Fed policymakers (* denotes 2011 voting member of the Federal Open Market Committee, which sets U.S. monetary policy):

* MINNEAPOLIS FED PRESIDENT NARAYANA KOCHERLAKOTA, May 25

“Under my baseline forecast, it would be desirable for the FOMC to raise the fed funds target interest rate by a modest amount toward the end of 2011 ... Such a stance can only be described as being easy monetary policy — just not as easy as late 2010.”

ST. LOUIS FED PRESIDENT JAMES BULLARD, May 24

“I do believe we’re in a sustainable economic recovery. We face some risks, but we always face some risks.”

BULLARD, May 23

“Past behavior of the (Fed) indicates that the committee sometimes puts policy on hold ... A pause allows more time to assess the strength of the economy.”

* FED GOVERNOR ELIZABETH DUKE, May 24

“Many families, particularly those with low-to-moderate incomes, are actually facing the decision between buying gas to drive long distances to work and paying their mortgage.”

CLEVELAND FED PRESIDENT SANDRA PIANALTO, May 24

“Employers are creating new jobs, and there are signs that job growth will accelerate as the year progresses.”

* CHICAGO FED PRESIDENT CHARLES EVANS, May 19

“Contemplating (monetary policy) adjustments in advance will help prepare us for the eventual time when a change in the stance of monetary policy will be necessary. Despite recent improvements to the outlook, we are not yet at that point.”

* DALLAS FED PRESIDENT RICHARD FISHER, May 19

“We’ve gone from too little liquidity to too much.”

* NEW YORK FED PRESIDENT WILLIAM DUDLEY, May 19

“The recovery remains moderate and we still have a considerable way to go.”

BULLARD, May 18

“It is time to drop the emphasis on core inflation as a meaningful way to interpret the inflation process in the U.S.”

MINUTES OF APRIL 26-27 FOMC MEETING, released May 18

“A majority of participants preferred that sales of (mortgage) agency securities come after the first increase in the (Fed’s) target for short-term interest rates.”

ATLANTA FED PRESIDENT DENNIS LOCKHART, May 15

“It is in the nature of policymaking in an uncertain environment that a central bank has to employ some amount of ambiguity in the forward guidance it gives the public.”

* PHILADELPHIA FED PRESIDENT CHARLES PLOSSER, May 12

“If the economy continues to make progress, then monetary policy will need to exit from its extraordinary accommodation in the not-too-distant future.”

* KOCHERLAKOTA, May 11

“My recommendation in this scenario (that inflation rises to 1.5 percent by year’s end) would be to raise the target fed funds rate by 50 basis points.”

LOCKHART, May 11

“The cadence of the recovery has been halting. At the gradual pace that I am expecting, it could take up to three years to get employment back to pre-recession levels.”

PIANALTO, May 11

“I do not expect inflation to remain above 2 percent beyond this year.”

RICHMOND FED PRESIDENT JEFFREY LACKER, May 10

“We can get increases in inflation even if unemployment is high ... When you get up to the top end of that range, you’ve got to get more concerned ... We’re at the very upper end of the range right now.”

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below