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ECB's VP de Guindos: Marginally More Optimistic On Growth; Inflation News Is Positive
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FED’S HAMMACK: 'NOT OBVIOUS' U.S. CENTRAL BANK SHOULD CUT INTEREST RATES AGAIN GIVEN INFLATION Fed's Hammack: It will take two to three years to get inflation back to 2%. FED'S HAMMACK: MONETARY POLICY IS 'ONLY BARELY RESTRICTIVE, IF AT ALL' 
Balancing Act: The Dual Mandate on an Economic Tightrope My thanks to the Economic Club of New York for inviting me to speak today and to Bill Dudley for moderating what I’m sure will be an engaging discussion. As many of you know, I lived and worked in New York for 30 years before moving to Cleveland to begin my new role at the Federal Reserve. I love Cleveland, and I love talking with friends and neighbors about all the great things to see and do in Northeast Ohio. But I have to chuckle when the topic turns to Cleveland traffic, which is nothing compared to the endless gridlock that I experienced in Manhattan—before congestion pricing kicked in, of course. Some of you might be thinking, just take the subway! If only the decision were that simple. When I lived in New York, I faced the daily debate about the comfort of a cab or the certainty of subway timing. But even once in the subway, I faced the maddening choice: do I jump on the local 1 train pulling into the station or wait for the express 3 train that says it’s four minutes away? Getting around New York is a balancing act to optimize every second of every day, and right now a balancing act feels like the perfect metaphor for monetary policy: If the economy is a tightrope, policymakers are tasked with walking a fine line to keep our dual mandate goals of maximum employment and price stability in balance. Today I’m going to talk about why I believe policy should be at a mildly restrictive setting to strike the right balance between our goals. But let me stress the “I” part of that sentence and indicate, as always, that these are only my views and not necessarily those of the Federal Reserve System or of my colleagues on the Federal Open Market Committee (FOMC).
Balancing Act: The Dual Mandate on an Economic Tightrope My thanks to the Economic Club of New York for inviting me to speak today and to Bill Dudley for moderating what I’m sure will be an engaging discussion. As many of you know, I lived and worked in New York for 30 years before moving to Cleveland to begin my new role at the Federal Reserve. I love Cleveland, and I love talking with friends and neighbors about all the great things to see and do in Northeast Ohio. But I have to chuckle when the topic turns to Cleveland traffic, which is nothing compared to the endless gridlock that I experienced in Manhattan—before congestion pricing kicked in, of course. Some of you might be thinking, just take the subway! If only the decision were that simple. When I lived in New York, I faced the daily debate about the comfort of a cab or the certainty of subway timing. But even once in the subway, I faced the maddening choice: do I jump on the local 1 train pulling into the station or wait for the express 3 train that says it’s four minutes away? Getting around New York is a balancing act to optimize every second of every day, and right now a balancing act feels like the perfect metaphor for monetary policy: If the economy is a tightrope, policymakers are tasked with walking a fine line to keep our dual mandate goals of maximum employment and price stability in balance. Today I’m going to talk about why I believe policy should be at a mildly restrictive setting to strike the right balance between our goals. But let me stress the “I” part of that sentence and indicate, as always, that these are only my views and not necessarily those of the Federal Reserve System or of my colleagues on the Federal Open Market Committee (FOMC).
<GBP=>:*BOE'S BAILEY: INFLATION OF 3.8% IN SEPTEMBER SEEN AS PEAK *BOE'S BAILEY: UNDERLYING PRICES PRESSURES CONTINUED TO EASE *BOE'S BAILEY: NEED TO SEE DOWNWARD PATH BECOMING ESTABLISHED *BOE'S BAILEY: POLICY DEPENDS ON HOW TWO FORCES PLAY OUT *BOE'S BAILEY: ACTIVITY IN… BOE'S BAILEY: CLEAR FROM AGENTS THAT LABOR MARKET SLOWING BOE'S BAILEY SAYS WE HAVE TO REMAIN CAREFUL THAT HIGHER FOOD AND ENERGY PRICES DO NOT LEAD TO 2ND-ROUND EFFECTS ON WAGE- AND PRICE-SETTING BOE'S BAILEY SAYS IT IS ENCOURAGING THAT INFLATION PEAK IN SEPT WAS 0.2 PERCENTAGE POINTS BELOW OUR AUGUST FORECAST BOE'S BAILEY: LATEST INFLATION ENCOURAGING, BUT JUST ONE POINT *BOE'S BAILEY: MOVING TO DEMAND-DRIVEN SYSTEM FOR LIQUIDITY *BOE'S BAILEY: NOT FOR US TO SPECULATE ON BUDGET CONTENTS *BOE'S BAILEY: NOT PASSING JUDGEMENT ON REEVES COMMENTS THIS WK *BOE'S BAILEY: MY OWN VIEW IS THAT WE NEED TO SEE MORE DATA *BOE'S BAILEY: MARKET CURVE AT…
