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More comments from the Fed heads crossing

4 of the branch presidents of the Federal Reserve are speaking this evening (US time)

  • Robert Kaplan, president of the Federal Reserve Dallas
  • James Bullard president of the Federal Reserve Bank of St. Louis
  • Dennis Lockhart. Atlanta
  • John Williams, San Francisco fed chief.

Williams:

  • Says globally the natural rate of interest has fallen
  • The decline in the natural rate of interest raises questions about inflation targeting
  • Optimistic about achieving US 2-pct inflation goal

Lockhart

  • Says not practical to move away from Fed's 2-percent inflation target

More:

Bullard:

  • Setting interest rates low or negative could plausibly lead to low inflation

(Nope, no idea what he is on about either)

Williams:

  • Fed has a lit of tools if US economy hit by another shock

(Dude, don't start me on a list of Fed tools)

Williams:

  • US is at full employment, inflation is near target
  • Fed is talking about two or three rate hikes this year, needs to hike gradually

Kaplan:

  • Costs to keeping rates as low as they are, but can't force rate hikes

Lockhart:

  • Fed should pursue normalisation of rates, to a lower destination than was historical norm
  • If Fed cannot lift inflation in coming year, must rethink what is keeping it so low

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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