Recent comments from Fed officials on the US monetary policy outlook

Recent comments from Fed officials on the US monetary policy outlook

• The Federal Reserve Bank of Cleveland President Loretta Mester said on October 24 that the fundamentals of the US economy are strong with no signs of pending US recession with a prolonged market downturn likely affecting US economic data. Fed is more sensitive to economic data as it is approaching a neutral stance.
• Dallas Federal Reserve Bank President Robert Kaplan said on October 24 that he sees rates rising “likely” to 2.75% to 3% range in 2019 with Fed raising rates to “neutral” only gradually and patiently. Kapan also said he will judge in spring or summer of 2019 if rate hikes above neutral are warranted.
• The Federal Reserve Bank of Atlanta President Raphael Bostic said on Tuesday, October 23 that unless data surprise on the downside, Fed should continue gradual rate hikes at least “a few more times”. Bostic expects Q3 GDP to rise strongly confirming that the US shifted to a higher gear and therefore there is no reason to keep Fed's “foot on the gas pedal”.