Fed Chatterbox: July Edition

Research evidence excerpt

Fed Chatterbox: July Edition

Goldman Sachs Fed Chatterbox

The Policy Outlook

Date Speaker Key Quote(s) Venue

July 16 Jefferson 1. [The current] policy stance should continue to support the labor market while allowing Remarks

inflation to resume its decline toward our 2 percent target as the effects of past tariffs and

energy prices pass through completely.

2. In a scenario where actual inflation does not start to cool down soon, I believe that it could be

appropriate to reconsider our current policy stance to ensure we fulfill our commitment to

deliver price stability.

July 16 Schmid In some ways the “looking through” inflation supply shocks approach to monetary policy is Remarks

already embedded in the way that many economists talk about the economy. This is something I

would like to see changed.

July 16 Logan 1. I currently believe modestly higher interest rates would better balance the outlook and risks Remarks

for the FOMC’s dual mandate goals.

2. In my view, we should not perpetually achieve one goal while missing the other. History shows

that when central banks try to hold down unemployment by accepting persistent inflation, they

often end up with more inflation and more unemployment.

July 15 Cook If we do not see signs of disinflation soon, I am prepared to act. Remarks

July 15 Williams With inflation running high, it is imperative that we restore it to the Federal Reserve’s 2 percent Remarks

longer-run goal on a sustained basis. The current stance of monetary policy is well positioned to

do that.

July 13 Waller 1. The FOMC has to be ready to tighten monetary policy to prevent a repeat of the Remarks

2021-to-2022 inflation episode.

2. I will need to see several months of lower readings to feel that inflation is moving in the right