- The Federal Reserve – Transcript of Chair Powell’s Press Conference, May 4, 2022
So 75 basis point increase is not something the committee is actively considering. What we are doing is we raised 50 basis points today. And we said that, again, assuming that economic and financial conditions evolve in ways that are consistent with our expectations, there’s a broad sense on the committee that additional 50 basis increases should be on, 50 basis points should be on the table for the next couple of meetings.
- Bloomberg – Fed Officials Defend Policies, Say Forward Guidance Is Working
Waller, Bullard say Fed guidance has had a substantial impact
Barkin declines to take 75 basis-point hike off the table
“Credible forward guidance means market interest rates have increased substantially in advance of tangible Fed action,” Bullard said in remarks prepared for a conference organized by the Hoover Institution at Stanford University. “This provides another definition of ‘behind the curve,’ and the Fed is not as far behind based on this definition.”
- CNBC – Fed’s Neel Kashkari confident inflation can come down, but not without some pain
* Minneapolis Fed President Neel Kashkari said Monday he’s confident inflation will come back to the central bank’s 2% target.
* He said he underestimated how persistent price increases would be and said rate increases to tame inflation will hurt low-income people.
Acknowledging that he was on “team transitory” in believing that surging prices wouldn’t last, he said persistent supply-demand imbalances have generated the highest inflation levels in more than 40 years. While the Fed’s monetary policy tools can help tamp down demand, they can’t do much to get supply to keep up. “I’m confident we are going to get inflation back down to our 2% target,” he told CNBC’s “Squawk Box” in a live interview. “But I am not yet confident on how much of that burden we’re going to have to carry vs. getting help from the supply side.”
- Bloomberg – Fed’s Barkin Declines to Take 75 Basis-Point Hike Off Table
Comments in MNI interview about potential jumbo-sized move
Kashkari says rates may need to rise above neutral level
- Bloomberg – Fed’s Bostic Says No Need to Move Faster Than Half-Point Hikes
Bostic: 50 basis points ‘is already a pretty aggressive move’
Atlanta Fed chief sees move to neutral range, then assessing
“I really think we need to be getting somewhere into the neutral range,” Bostic said, referring to a policy that neither stimulates nor contracts the economy. “For me I am looking at somewhere between 2-2.5% as our neutral range. Then let’s wait and see what’s happening.”