, May 29 (Reuters) – Kansas City Federal
Reserve Bank President Esther George said Thursday she is open
to leaving the U.S. central bank’s balance sheet big even as it
withdraws accommodation, a comment that reveals the extent of
uncertainty at the Fed over future policy.
The Fed’s balance sheet now tops $4 trillion after years of
buying bonds to boost the economy, a policy that George has
opposed for years.
, May 29 (Reuters) – A top Federal Reserve
official on Thursday called for the U.S. central bank to raise
interest rates soon after it winds down its bond-buying stimulus
and to raise them more sharply than most of her fellow
The Fed is on target to phase out bond-buying completely by
this coming fall. Fed Chair Janet Yellen has said short-term
interest rates will stay at their current near-zero level for a
“considerable” time afterward, and will then rise only
Barry Eichengreen: monetary policy rules are a “compass” and no navigator should blindly rely on a compass #hooverfedconference
Orphanides, at #hooverfedconference, calls for a single, inflation-focused mandate for #Fed, and a prohibition of “monetary financing”
By Ann Saphir
PALO ALTO Calif. (Reuters) – The U.S. Federal Reserve does not have the power to fight inflation on its own, a prominent economist said on Thursday, a conclusion that challenges the very bedrock of current Fed thinking.
“Inflation is always and everywhere a fiscal problem,” declared John Cochrane, a professor at the University of Chicago, speaking at Stanford University’s Hoover Institution. “Long-run price stability is a function of the structure of government debt, ﬁscal promises, and ﬁscal commitments. The central bank has only a short-run smoothing role, as it did under the gold standard.”