Fed's Jefferson: If inflation fails to ease, revisiting policy stance may be necessary to maintain price stability Fed's Jefferson: Current policy positioned to respond based on incoming data, evolving outlook and risk balance

Fed's Schmid: Inflation is too hot and above target for too long. The Federal Reserve, Economic Outlook and Monetary Policy It is an honor to join you today. It is great to be back in Nebraska, my home state, and I look forward to our discussion. Just two weeks ago we marked our 250th birthday as a nation. And while we, as a country, might feel young in comparison to some other nations, the truth is that throughout history there are not many institutions or governments that have endured for as long. What is it that has made the United States so successful? One important element is the federated structure of the United States. Distributed power and decision-making across federal, state, and local governments connects Americans more closely within their communities and their government. It allows for a diversity of views and experimentation in how society should be governed. America has always had a healthy skepticism towards centralization and the concentration of power that has served us well over time.

Good morning. Thank you, Daron [Peschel], for that kind introduction. And welcome, everyone, to the Dallas Fed’s Houston branch. I’m looking forward to my conversation with Dr. Margaret Ford Fisher, chancellor of Houston City College, in just a few minutes. As I travel through the Dallas Fed’s district, I talk extensively with workers, bankers, business executives and community leaders, just as we’re doing here today. These dialogues matter for two reasons. First, they provide nuanced, up-to-date information. I’m grateful to everyone who takes time to talk. Your perspectives help me learn how people are experiencing the economy. You teach me how national policy decisions reverberate here in Texas. And you show me what trends are on the horizon. Aggregate macroeconomic statistics can be highly informative, but there’s no substitute for on-the-ground insight. Second, public dialogue lets you hold me accountable for serving you well. The Fed is an independent central bank. Independence means monetary policy decisions focus on the long term. We are still accountable to the American people. The Fed reports regularly to Congress. Community leaders on the board of directors at each Federal Reserve Bank select and evaluate its management. And in conversations like this one, you get to tell us how we’re doing. Through all those engagements, we expect and need the public to hold us to account for fulfilling the important mission you’ve trusted us with. The Federal Open Market Committee (FOMC) sets monetary policy to achieve two goals: maximum employment and stable prices. Congress assigned us those goals. We pursue both with vigor and focus. Everyone who wants to find work should be able to do so. Households and businesses should be able to count on low inflation so they can make ends meet today and plan for a prosperous future. In the long run, the FOMC’s two goals are complementary. They work in concert to support a strong and growing American economy. Today, I’d like to tell you why I currently believe modestly higher interest rates would better balance the outlook and risks for the FOMC’s dual mandate goals. These are my views and, let me emphasize, not necessarily those of my FOMC colleagues. The FOMC targets a 2 percent inflation rate as measured by the price inde Fed's Logan: Modestly higher interest rates would better balance outlook, risks. Fed's Logan: One month of lower CPI inflation is not enough. Fed's Logan: Downside risks to employment have faded, inflation risks are mainly to the upside.