Fed Speak: FOMC Members Comments on Policy from Jackson Hole

     WASHINGTON (MNI) - The following is a summary of significant policy

comments from members of the Federal Reserve's policymaking Federal Open Market

Committee at the Kansas City Fed's annual economic symposium at Jackson Hole.

Fed Chair Yellen gave a speech on financial regulations and did not comment on

monetary policy

     NOTE: * denotes member is a voter in 2017.

INTEREST RATES

     Jerome Powell (Governor*): "You would have expected given that we're

getting tighter labor markets that we'd have a little higher inflation. I think

that what that gives us is the ability to be patient." (Aug. 25)

     Robert Kaplan (Dallas*): "I'm not saying I won't be in favor of raising

rates before the end of the year. I think we have the ability to be patient, and

I want to see more information that suggests we're making progress toward

meeting our 2% inflation objective." (Aug. 25)

     Loretta Mester (Cleveland): "I don't think we can wait until inflation gets

back up to 2%. We've learned over time that we need to be preemptive and that

means we need to be forward-looking." (Aug. 25)

     Esther George (Kansas City): "I'll be looking at the data in the next few

weeks as we get ready for the September meeting, and see whether that still

makes sense. Based on what I see today, I think there's still opportunity to do

that." (Aug. 24) 

BALANCE SHEET

     Powell (Governor*): "The time will be here soon ... We worked carefully and

patiently to put together a plan and we've circulated that plan and markets have

accepted it." (Aug. 25)

     Kaplan (Dallas*): "At the next possible opportunity I think we should begin

that process of letting the balance sheet run down." (Aug. 25)

     George (Kansas City): "I'll be looking at the data in the next few weeks as

we get ready for the September meeting to see whether that still makes sense.

Based on what I've seen today I think there's still opportunity to do that."

(Aug. 24)

INFLATION

     Powell (Governor*): "Inflation is a little bit below target, and it's kind

of a mystery." (Aug. 25)

     Kaplan (Dallas*): "We're obviously not meeting our inflation target." (Aug.

25)

     Mester (Cleveland): "I would not be surprised if we get low inflation

readings in the near term. I am not in the camp that we have to see inflation

rise to 2% before we take the next move." (Aug. 27)

     George (Kansas City): "Inflation is running close enough to 2% in my view

that it allows a gradual approach." (Aug. 24)

--MNI Washington Bureau;tel: +1 202 371-2121; email: karen.mracek@marketnews.com

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