Federal Open Market Committee News Scan …

Board of Governors of the Federal Reserve System, Jerome Powell. Recently, Fed Board chair Jerome Powell addressed price stability and the monetary policy rate response to it. “The latest FOMC statement also indicates that the Committee expects to begin reducing the size of our balance sheet at a coming meeting. I believe that these policy actions and those to come will help bring inflation down near 2 percent over the next 3 years.” See speech here.

Board of Governors of the Federal Reserve System, Christopher J Waller. Recently, Governor Christopher J. Waller gave a speech discussing the role of monetary policy in combating rising rent costs and house prices.  “Based on various measures of asking rents, some recent research suggests that the rate of rent inflation in the CPI will double in 2022.3 If so, rent as a component of inflation will accelerate, which has implications for monetary policy.” See speech here.

Federal Reserve Bank of St. Louis, Jim Bullard. “St. Louis Fed President Jim Bullard discussed the upside surprise on inflation in recent months and the Fed’s response. He spoke at the Asian Investment Conference in an interview that was recorded March 22.” See video and article here.

The Federal Open Market Committee (FOMC) is responsible for open market operations, one of the three primary monetary policy tools that are used to influence the federal funds rate. Open market operations involve the sale and purchase of securities by a central bank in the open market. The federal funds rate is the overnight rate that a member bank charges to another member bank when lending excess reserves.