Page 32 - Fomc News Today

The Fed in a statement said Brainard submitted her resignation Tuesday, and that it will be effective on or around Feb. 20.

The Federal Reserve will likely have to keep raising interest rates to rein in price growth, which could slow economic expansion and affect the jobs market, Governor Michelle Bowman said.

"We actually are increasing the odds — we can get a soft landing. That doesn't mean we're out of the woods," Harker said.

Federal Reserve Bank of New York President John Williams said forecasts officials submitted in December are still a good guide for where interest rates are headed this year and that policy may need to stay at restrictive levels for a few years to get inflation down.

Federal Reserve Bank of Atlanta President Raphael Bostic said January's strong jobs report raises the possibility that the central bank will need to increase interest rates to a higher peak than policymakers had previously expected.

"We need to raise rates aggressively to put a ceiling on inflation, then let monetary policy work its way through the economy," Kashkari said.

"Investors are acknowledging that the Fed is nearing the end of its rate tightening cycle which is supporting a relief rally in stocks and lower bond yields, said Bryce Doty, senior vice president at Sit Investment Associates.

The Fed's benchmark rate is now the highest it has been since 2007. | Economy

If the Fed is more flexible with its inflation target, it could avert a recession.

Analysts opine on the Federal Open Market Committee meeting, how high interest rates will go and when the first cut may happen.