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