Federal Reserve Bank of San Francisco President John Williams said the central bank should avoid encouraging excessive financial risk-taking as it pursues its goals of full employment and stable prices.
Federal Reserve officials groped for ways to communicate their dissatisfaction with too-low inflation as they prepared to alter their guidance for the likely future path of interest rates at their March meeting.
Treasuries rose, pushing 10-year note yields down for a fourth day, after the U.S. sale of $30 billion in three-year debt attracted the most demand in more than a year from a group of investors that includes pension funds and insurers.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota, who dissented from this week’s decision on monetary policy, said the central bank’s new guidance about its policy intentions risks holding back economic growth by fostering uncertainty.
Federal Reserve Bank of St. Louis President James Bullard defended Janet Yellen’s comments on interest-rate increases, saying her outlook is in line with private surveys on when the central bank might start tightening policy.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota, who votes on policy this year, said the central bank could sooner achieve its goals of full employment and 2 percent inflation by stepping up stimulus.