Federal Reserve Governor Jeremy Stein endorsed a warning by economists that raising the main interest rate may cause a financial-market convulsion similar to the “tantrum” that occurred last year after the Fed said it was considering trimming its bond purchase program.
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.
Here’s what to look for when the Federal Open Market Committee releases a statement today at 2 p.m. after a two-day meeting in Washington. It will be the last meeting for Chairman Ben S. Bernanke, who isn’t scheduled to give a press conference.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota, who doesn’t vote on monetary policy this year, said the central bank needs to set clearer guideposts for the outlook for record stimulus and commit to press on with monthly bond purchases at least until unemployment falls below 7 percent.
Federal Reserve policy makers trimmed bond buying for a second straight meeting, uniting behind a strategy of gradual withdrawal from Ben S. Bernanke’s unprecedented easing policy as Janet Yellen prepares to succeed him as chairman.