Fed officials disagree on dealing with uncertainty
Vice-chair Brainard and Cleveland Fed’s Mester take different stances on uncertainty
The US Federal Reserve is acting in an intensely uncertain situation, and two of its top officials have taken diametrically opposed views on how to respond.
“We will be operating in an uncertain environment for some time,” said the Federal Reserve Bank of Cleveland’s president, Loretta Mester, on October 11.
So far, the Federal Open Market Committee has acted aggressively, raising the federal funds rate 75 basis points at four consecutive meetings, in the face of multi-decade high inflation.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Nandalal Weerasinghe on Sri Lanka’s IMF programme, central bank reforms and road to recovery
CBSL chief returned from retirement to secure structural reforms, recapitalisation and financial resilience
‘Financial conditions targeting’ could help stabilise output – paper
“Risk-centric” New Keynesian model highlights benefit of acting on financial conditions
Cross-currency letters of credit gaining popularity in Asia
Divergent central bank policies see CNH LCs increasingly used to cover USD invoices
BoK makes surprise 25bp cut to base rate
Majority of monetary policy board decides risks to growth warrant loosening in policy
Imported inflation waning but still present – BoE’s Dhingra
MPC member tells panel that another energy shock could still trigger renewed price hikes in UK
RBNZ delivers third consecutive rate cut
Central bank signals further easing early next year as inflation returns to target band
Nigeria tightens policy further as inflation continues to rise
Central bank raises rates by 25bp as annual headline inflation exceeds 33%
Economists urge BoE to be more transparent on rate paths
Value of scenario analysis depends heavily on revealing reaction function, speakers say