I'm not attempting to provide an impossible degree of precision, but a general ballpark. Based on this analysis, I believe the appropriate Fed funds rate is in the mid 2% area, almost two percentage points lower than current policy. The Federal Reserve has been entrusted with the important goal of promoting price stability for the good of all American households and businesses.And I am committed to bringing inflation sustainably back to 2%. However, leading policy restrictive by such a large degree brings s ...

The long-held dual mandate of the Federal Reserve to maintain stable prices and maximize employment is under increasing scrutiny in the nation's capital as GOP pressure on the central bank intensifies. House Financial Services Committee Chair French Hill (R-Ark.) has introduced a new bill that would seek to end the Fed's dual mandate so that central bank policymakers could focus exclusively on one goal: controlling inflation. "For too long, the Federal Reserve has been stretched between competing objec ...

Monetary Policy Objectives - The Council of Economic Advisers (CEA) advises on fiscal and regulatory policies to achieve full employment and stable prices [1] - The Federal Reserve (Fed) also aims to advance America's economic prosperity, mirroring goals in the Employment Act of 1946 and the Full Employment and Balanced Growth Act of 1978 [2] - Congress tasked the Fed with pursuing price stability, maximum employment, and moderate long-term interest rates [10] Central Bank Independence and Role - Independence of monetary policy is critical for the central bank's success in preventing depressions and hyperinflation [6] - The Federal Open Market Committee (FOMC) is an independent group with a monumental task, and its independence should be preserved [8] - The Fed's role in safeguarding the financial system is of paramount importance [6] - The Fed manages financial system liquidity, oversees global financial institutions, and sets varying prices of money for borrowers and lenders [8][9] Economic Impact - Monetary policy and market structure significantly influence the price and availability of credit, impacting major decisions like purchasing a car or home [4][5] - Effective monetary policy is critical to the well-functioning of the economy, the preservation of America's robust capital markets, and the growing prosperity of the nation [10]

Monetary Policy & Interest Rates - The market anticipates a potential rate cut in September, influenced by Chairman Powell's recent statements [1] - The Federal Reserve (Fed) is increasingly concerned about rising unemployment rates, potentially triggered by changes in immigration policies and other factors [2] - The Fed's emphasis on employment over inflation, despite inflation being at 3% (above the 2% target), raises questions about its policy bias [6] - There's debate on whether current policies are "modestly restrictive," with arguments suggesting real rates are closer to neutral at 150 basis points (15%) [7] Economic Trends & Labor Market - The economy is experiencing a slowdown in both supply and demand, creating a "curious" situation [3] - Global demographic shifts, including declining fertility rates, are impacting the labor market [4] - Monthly job growth of 40,000 to 50,000 may not be a negative outcome, considering the evolving dynamics of the labor market [4] - Recent labor reports and revisions were not favorable, contributing to the Fed's openness to a September rate cut [5] Fed Independence & Political Pressure - There are concerns about the Fed's independence due to significant and direct political pressure, reminiscent of the Johnson and Nixon eras [12][13] - The Fed is under pressure from the administration, potentially affecting the reappointment of board members [12] - Chairman Powell is navigating differing views within the Federal Open Market Committee (FOMC) and attempting to build consensus [9][10] - The Fed's decisions are heavily data-dependent, closely monitoring upcoming inflation and employment reports before their September meeting [11]

There's a lot going on with this meeting, I will say, and delighted to be here with you. The framework review, which we will hear more about, very complicated context, obviously. And let to tell you a little bit about how I'm seeing economic conditions in the outlook.So let's get into that. There is this dual mandate that's in question, the idea of inflation versus labor. Where are you in the continuum of which you need to be most worried about. Well, you need to be this is a time when you need to be lookin ...

President Trump is set to name a new Federal Reserve governor this week. This comes after Fed Governor Adriana Cougler, a Biden appointee, announced she is stepping down from her role at the central bank. Kougler's term was set to expire at the end of January 2026.Joining us now is Loretta Mester, former president and CEO of the Federal Reserve Bank of Cleveland. Loretta, it is great to see you as always. Let's start there with Cougler's departure.Loretta, what do you make it make of it and and who do you t ...

I just read a piece uh from uh from the op-ed that you wrote uh with Ben Bernanki. Yes. And then I followed up by saying that we had talked to Scott Besson and we had asked a similar question of of actually Elizabeth Warren recently which is if in fact Jay Powell were to be fired, ousted or otherwise pushed out, what would the market's reaction actually be.Well, I think we got a taste of that um when President Trump announced that he had shown a letter to Republicans uh that would call for Chair Powell's ou ...

I just read a piece uh from uh from the op-ed that you wrote uh with Ben Bernanki. Yes. And then I followed up by saying that we had talked to Scott Bessant and we had asked a similar question of of actually Elizabeth Warren recently which is if in fact Jay Powell were to be fired, ousted or otherwise pushed out, what would the market's reaction actually be.Well, I think we got a taste of that um when President Trump announced that he had shown a letter to Republicans uh that would call for Chair Powell's o ...

Incoming Austrian central bank Governor Martin Kocher says Donald Trump’s attack on the Fed’s independence puts price stability at risk https://t.co/QOdhx0Mx68 ...

I want to start with this data and maybe we can spend some time on a palace intrigue later on. Jobless claims, initial claims lower than expected, continuing claims higher than expected and creeping higher over the past few months. From your vantage point, president title, how much weight would you put on one versus the other.And what's the labour market picture look like in your point of view, your opinion. Well, the labor market is shaping up to be solid and the data today confirmed that. Now, continuing ...