4 of the branch presidents of the Federal Reserve are speaking this evening (US time)

  • Robert Kaplan, president of the Federal Reserve Dallas
  • James Bullard president of the Federal Reserve Bank of St. Louis
  • Dennis Lockhart. Atlanta
  • John Williams, San Francisco fed chief.

Williams:

  • Says globally the natural rate of interest has fallen
  • The decline in the natural rate of interest raises questions about inflation targeting
  • Optimistic about achieving US 2-pct inflation goal

Lockhart

  • Says not practical to move away from Fed's 2-percent inflation target

More:

Bullard:

  • Setting interest rates low or negative could plausibly lead to low inflation

(Nope, no idea what he is on about either)

Williams:

  • Fed has a lit of tools if US economy hit by another shock

(Dude, don't start me on a list of Fed tools)

Williams:

  • US is at full employment, inflation is near target
  • Fed is talking about two or three rate hikes this year, needs to hike gradually

Kaplan:

  • Costs to keeping rates as low as they are, but can't force rate hikes

Lockhart:

  • Fed should pursue normalisation of rates, to a lower destination than was historical norm
  • If Fed cannot lift inflation in coming year, must rethink what is keeping it so low