April 20, 2007 / 7:45 PM / 12 years ago

FACTBOX-U.S. Fed policymakers' recent comments

 CHICAGO, April 20 (Reuters) - The following is a summary of
recent comments by Fed policy-makers:
* Denotes 2007 voting member of the Federal Open Market
Committee, which sets U.S. monetary policy.
 * FED GOVERNOR FREDERIC MISHKIN, APRIL 20:
 "I continue to believe that the current stance of monetary
policy is likely to foster sustainable economic expansion and a
gradual ebbing in core inflation.
 "Although I expect that core inflation will drift down, I
recognize that achieving further reductions may take time.
 "We do see some stabilization of demand in the housing
market ... there is some indication that the market could be
bottoming out."
 PHILADELPHIA FED PRESIDENT CHARLES PLOSSER, APRIL 17:
 "Inflation is uncomfortably high from my perspective and
not declining as rapidly as I'd like to see it."
 "It's very important that the Fed maintains its vigilance
about inflation, that we not let inflation expectations get out
of hand ... If inflation doesn't moderate as we expect, the Fed
would need to think about what appropriate action will be."
 * NEW YORK FED PRESIDENT TIMOTHY GEITHNER, APRIL 17:
 "The economic price of protection, in terms of distorted
incentives, reduced flexibility and broader costs on the
economy as a whole, seem both more substantial and more
enduring than any temporary political benefit."
 DALLAS FED PRESIDENT RICHARD FISHER, APRIL 16:
 "Bad fiscal policy creates pressures for bad monetary
policy. When fiscal policy gets out of whack, monetary
authorities face pressure to monetize the debt, a cardinal sin
in my mind."
 PHILADELPHIA FED PRESIDENT CHARLES PLOSSER, APRIL 16:
 "To put it directly, policy-makers have come to accept the
fact that price stability is and should be the primary focus of
monetary policy.
 "If people believe the central bank is committed to price
stability, they will make decisions that lead to better
outcomes than if they believe the central bank will give in to
temptation and create higher inflation."
 DALLAS FED PRESIDENT RICHARD FISHER, APRIL 13:
 "The Federal Reserve has the means to do an enormous amount
of damage if we let inflation get out of control, or in being
so aggressive in trying to contain things that we infringe upon
dynamic economic growth."
 RICHMOND FED PRESIDENT JEFFREY LACKER, APRIL 11:
 "If inflation does not moderate, I believe additional
firming may be needed ... I think there is uncertainty about
the degree to which core inflation is likely to moderate this
year.
 "Moderating growth does not reduce inflation, central banks
reduce inflation. In any event, if it came down it would be
because of central bank action."
 * CHICAGO FED PRESIDENT MICHAEL MOSKOW, APRIL 11:
 "So far this year inflation has been somewhat elevated,
highlighting the risk that inflation could stay stubbornly
high.
 "For the balance of 2007, economic growth likely will
average modestly below potential. But I expect that growth will
be picking up gradually over the coming quarters and return to
near potential by 2008."
 DALLAS FED PRESIDENT RICHARD FISHER, APRIL 10:
 "We have a responsibility to make sure inflation does not
get out of the bag, and I am among those in our school that
believe we still have more work to do on that front.
 "We have been growing handsomely ... and we have kept
inflation reasonably low, but not as low as some of us would
like".
 * FED GOVERNOR FREDERIC MISHKIN, APRIL 10:
 "The current rate of inflation is certainly higher than I
would like to see. The view is that there is a likelihood, in
fact, that we will have moderation in inflation."
 "But on the other hand, a key issue is, in fact, if we
don't see that happening, that would be of great concern and as
a result, we would then have to do something about it."
 DALLAS FED PRESIDENT RICHARD FISHER, APRIL 4:
 "Inflation is running at too high a rate now ... I would
like to see inflation lower than it currently is.
 "Thus far, the damage from the subprime market has been
largely contained. Nevertheless, because 40 percent of
homebuyers last year were non-prime ... borrowers, housing
markets may feel some short-term pains, making it less clear
whether housing construction has bottomed."
 * ST. LOUIS FED PRESIDENT WILLIAM POOLE, APRIL 3:
 "Inflation is a major concern and if inflation were to head
up in a convincing way from the current level, I could be in
favor of a rate increase at some point."
 FEDERAL OPEN MARKET COMMITTEE, MARCH 21:
 "Recent indicators have been mixed and the adjustment in
the housing sector is ongoing. Nevertheless, the economy seems
likely to continue to expand at a moderate pace over coming
quarters.
 "Recent readings on core inflation have been somewhat
elevated. Although inflation pressures seem likely to moderate
over time, the high level of resource utilization has the
potential to sustain those pressures.
 "In these circumstances, the Committee's predominant policy
concern remains the risk that inflation will fail to moderate
as expected. Future policy adjustments will depend on the
evolution of the outlook for both inflation and economic
growth, as implied by incoming information."
 (To access stories on Fed policy click on [FED/AHEAD])



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