Trump-Xi Talks Begin Amid Pentagon Missile Supply Concerns

Good morning, and a warm welcome to all of you. It is a pleasure to welcome members of the Boston Economic Club to the Boston Fed today. We appreciate our relationship with the Economic Club, and its role in the vibrant economic and financial “ecosystem” of Greater Boston. 1 I’m looking forward to sharing some thoughts on economic conditions. But first, as always, my standard disclaimer. These comments reflect my own views, not necessarily those of my colleagues at the Board of Governors in Washington, D.C., or at the other Federal Reserve Banks. I’ll preface my remarks about the economy with a few opening observations. It has become a welcome tradition for the Club to invite Federal Reserve Bank staff to attend when Boston Fed presidents speak. And today, in addition to Club members, the audience includes many Bank employees. So, in the context of all the recent discussion about the Fed’s roles, independence from political pressures, and opportunities to be more effective and efficient, I’d like to say a few words about our people. At his final press conference, outgoing Fed Chair Jay Powell said that “This institution is resilient, capable, and staffed by professionals of extraordinary talent and exceptional dedication.” Earlier this year, he also said “I will tell [the next Chair that] you're about to meet the most qualified group of people you not only have ever worked with, [but] you will ever work with … There isn't a better cadre of professionals more dedicated to the public wellbeing than those who work at the Fed.” Having been at the Boston Fed for almost four years, and seeing it in action, I wholeheartedly agree with his sentiments. Many people do not reali FED'S COLLINS SAYS SHE COULD ENVISION THE NEED FOR RATE HIKES COLLINS BELIEVES THE FED WILL HAVE TO MAINTAIN STRICT POLICIES FOR A WHILE LONGER. FED'S COLLINS WANTS MORE RATE CUTS LATER THIS YEAR IF ECONOMY PERMITS. COLLINS STRESSES THE FED MUST TAKE NECESSARY ACTIONS TO LOWER INFLATION TO 2%.

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Fed's Kashkari: Inflation is too high. Fed's Kashkari: Need to get back to 2% inflation, should not move the goalpost. Fed's Kashkari: A huge question mark about how long the Hormuz Strait will be closed, which will have a big effect on inflation. Fed's Kashkari: even if Hormuz Strait reopens, it will be months before supply chains return to normal.