SUN VALLEY Idaho (Reuters) – The Federal Reserve will probably need to keep interest rates near zero for at least another year, a top Fed official said on Monday, even as he expressed optimism the economy is well on its way to health.
“As things get better we can kind of get back to our normal approach to policy,” San Francisco Fed President John Williams told members of the Utah and Montana Bankers Association, predicting full employment and normal inflation by the “early part” of 2016.
SAN FRANCISCO (Reuters) – Whether U.S. inflation next year rises above or remains stuck below the Federal Reserve’s 2-percent target will depend in large part on how easily the long-term unemployed find work, a study published on Monday by the San Francisco Fed suggests.
As long as a strengthening economy means better job prospects for all workers, even those who have been unsuccessfully looking for six months or more, inflation looks set to stay well below 2 percent all next year, the study shows.
By Ann Saphir
(Reuters) – The U.S. Federal Reserve can reasonably wait to raise interest rates until mid-2015 without risking an undesirable rise in inflation, an influential Fed policymaker said on Tuesday.
“We think we can get the unemployment rate considerably lower and still not have an inflation problem,” William Dudley, president of the New York Federal Reserve Bank, told a Puerto Rico accounting group.
SAN FRANCISCO, June 12 (Reuters) – The U.S. Federal Reserve
should suspend payments to the Treasury to avoid a potential
cash crunch when the time comes to raise interest rates,
according to former Richmond Fed policy adviser Marvin
Such a reversal in policy is critical to protecting the
Fed’s inflation-fighting credibility, Goodfriend said in an
interview Thursday, because otherwise the central bank will find
itself needing to print money to pay for its obligations as it
raises interest rates, an untenable situation in his view.