Federal Reserve
Federal Reserve
The Federal Reserve System, more commonly known as the Federal Reserve, represents the central banking system of the United States. Like other central banks globally, the Federal Reserve is in charge of monetary policy, and in this case in the United States, the Federal Reserve is one of the most watched and tracked entities for forex traders, due to its material impact on the US dollar. Initially established in 1913, the Federal Reserve Bank was created to perform a wide variety of functions. This includes stabilizing and maintaining flexible monetary policy
The Federal Reserve System, more commonly known as the Federal Reserve, represents the central banking system of the United States. Like other central banks globally, the Federal Reserve is in charge of monetary policy, and in this case in the United States, the Federal Reserve is one of the most watched and tracked entities for forex traders, due to its material impact on the US dollar. Initially established in 1913, the Federal Reserve Bank was created to perform a wide variety of functions. This includes stabilizing and maintaining flexible monetary policy
Read this term Gov. Michele Bowman’s Opening Remarks at the Cleveland Federal Reserve Conference on “Communities Thrive in a Challenging Economy.”
- Additional increases in the policy rate would be required to reach a sufficiently restrictive level and control inflation
- Inflation remains “unacceptably high” despite the headline figure’s decline
- Mon pol has some impact on the economy but core inflation has basically stabilized since the fall of 2022
- We will look for inflation on a “steady downward trajectory” in making appropriate policy decisions at upcoming meetings
- full text
She tends to be hawkish so it’s no surprise.
This is the main part of her speech:
Recent research has argued that supply and demand factors associated with the pandemic, combined with an unusually expansionary fiscal policy, contributed to the rise in economic inflation
economic inflation
Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or a country increases over a period of time. It is the rise in the general price level where you actually buy a particular currency less than it was in previous periods. In terms of evaluating strength or currencies, and therefore foreign currencies, inflation or its measures are very impressive. Inflation stems from the general creation of money. This money m
Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or a country increases over a period of time. It is the rise in the general price level where you actually buy a particular currency less than it was in previous periods. In terms of evaluating strength or currencies, and therefore foreign currencies, inflation or its measures are very influential. Inflation stems from the general creation of money. This money m
Read this term. Global and US supply chain disruptions and shipping and logistics challenges also led to higher prices for a number of commodities.2Many of the supply-side issues have now abated, and the FOMC has rapidly increased the fed funds rate to better balance demand and supply. But while overall inflation has decreased significantly, it is still very high. So, I think there is more work to be done to bring down inflation.
I supported the FOMC’s decision last week to hold the target range for the federal funds rate steady and to continue reducing the Fed’s securities holdings; However, I believe that further increases in the policy rate will be necessary to bring inflation down to our target over time. While tighter monetary policy has had some impact on economic activity and inflation so far, we have seen core inflation essentially plateau since the fall of 2022, and I would anticipate that we will need to increase the federal funds rate further to achieve a sufficiently constrained stance. Monetary policy to reduce the inflation rate purposefully and permanently. I will continue to monitor incoming data and look for signs that inflation is on a steady downward trajectory while considering appropriate monetary policy in future meetings.
She doesn’t give any hints there about how much more screwing is needed.