Four Fed Regional Bank Presidents See Less Need for New Easing


Published April 5, 2012 
Categories: Economy, Featured News

Share via emailShare on Facebook+1Share on LinkedInShare on Twitter

Bloomberg reported that four Federal Reserve regional bank presidents who vote on monetary policy this year see less of a need for the Fed to spur the economy with new accommodation.

The presidents’ comments echo the minutes of the Fed’s March 13 meeting, in which a “couple of” participants called for easing only “if the economy lost momentum” or if inflation fell below its 2% target. Fed officials will hold the main interest rate close to zero at least through 2014, a date “subject to revision in response to significant changes in the economic outlook,” Bloomberg said.

“The probability of needing to do additional stimulus is lower,” San Francisco Fed president John Williams told reporters yesterday. Cleveland’s Sandra Pianalto, Atlanta’s Dennis Lockhart and Richmond’s Jeffrey Lacker also spoke against additional accommodation this week, with Lacker saying yesterday he “was surprised a couple months ago at the probability market participants seemed to ascribe to further easing,” Bloomberg noted.

To read the full Bloomberg story click here.

No comments

Tell us what you're thinking...

We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam, and we review comments frequently to ensure they meet our standards. Views expressed in the comments do not represent those of the Monitordaily.