Four Federal Reserve regional bank presidents who vote on monetary policy this year see less of a need for the Fed to spur the economy with new accommodation.
“The probability of needing to do additional stimulus is lower,” San Francisco Fed President John Williams told reporters yesterday. Cleveland’s Sandra Pianalto, Atlanta’s Dennis Lockhart and Richmond’s Jeffrey Lacker also spoke against additional accommodation this week, with Lacker saying yesterday he “was surprised a couple months ago at the probability market participants seemed to ascribe to further easing.”
Pianalto said in a speech April 2 that further monetary stimulus could put the central bank’s inflation goal “at risk,” and that the Fed’s current stance is “best suited to foster steady gains in output and employment and to maintain stable prices.”
Policy makers at last month’s FOMC meeting raised their assessment of the economy as the labor market strengthened, and refrained from taking new action to cut borrowing costs. The Fed next meets April 24-25.