Fra MarketWatch:
Federal Reserve
At the Federal Reserve, there are diverging views about interest rates.
There should be plenty of debate when Federal Reserve officials gather this week to determine whether to raise interest rates for the first time since the end of the Great Recession.
Between low inflation, market turmoil, continued job growth, a strong second-quarter GDP reading and the impact from China’s devaluation of its currency, the decision is no slam dunk.
Here’s a roundup of the latest comments from every Fed official.
Economists said for the first time in years, the Fed decision was truly a toss-up. As a result, the three Fed governors: Jerome Powell, Daniel Tarullo, and Lael Brainard are seen as important “wild cards” at the meeting.
Official View
Voters
Chairwoman Janet Yellen Not at Jackson Hole. Told Congress in July that a rate hike this year would likely be appropriate.
Vice Chair Stanley Fischer In an interview Friday, he said it’s too early to tell if case for rate hike was more compelling or less compelling. Before China yuan move, Fischer said case for September hike was “pretty strong” but not conclusive. He says level of confidence “pretty high” inflation will return to 2% target. He delivers a formal speech at Jackson Hole on Saturday.
Gov. Lael Brainard Said in June that the Fed should give the data time to show labor-market progress, inflation rising.
Gov. Jerome Powell Said in early August that he’s not sure whether to support a September rate hike.
Gov. Daniel Tarullo Said in June that the U.S. economy has lost momentum.
New York Fed President William Dudley Said on Wednesday that a rate hike is “less compelling” than a few weeks ago.
Chicago Fed President Charles Evans Didn’t want rate hikes until middle of next year, as of July.
Richmond Fed President Jeffrey Lacker In a speech Friday entitled “The Case Against Further Delay,” Lacker said the labor market was strong enough and inflation running fast enough to justify a rate hike.
Atlanta Fed President Dennis Lockhart Sees even odds of a September rate increase.
San Francisco Fed President John Williams Told The Wall Street Journal he’s not even sure the Fed will raise rates once this year— and previously, had said two hikes were possible.
Nonvoters
St. Louis Fed President James Bullard Favors raising rates and said market volatility shouldn’t delay action.
Kansas City Fed President Esther George Favors September hike but said turmoil complicates the decision.
Cleveland Fed President Loretta Mester Said U.S. economy could support a hike, but wants to evaluate all the data.
Boston Fed President Eric Rosengren Says it’s not clear whether inflation is returning to 2% target. “Indications of a much weaker global economy would at least increase the uncertainty surrounding policymakers’ economic growth and inflation forecasts,” he said.
Minneapolis Fed President Narayana Kocherlakota Says more easing should be considered.
Philadelphia Fed President Patrick Harker Has made no public comments on monetary policy.
Dallas Fed President Robert Steven Kap
