Federal Reserve (FED) news

• Doesn't expect a V-shaped recovery

• Expects something more like negative quarters of growth this year, then gradual return to positive growth next year

• It will take time for governments to lift restrictions and people to regain confidence

• Uncertainty is the central issue surrounding the economy's future

• Fed is committed to near-zero rates until after the crisis passes

• Until price pressures move higher and unemployment data reverse its course

• BoJ must pay more attention than before to heightening risks, particular focus in on the output gap

• Economy sustaining momentum for hitting BoJ's price goal

• BoJ can combine, enhance tools which are rate cuts increase in asset buying and acceleration of base money

• Our policy is stimulating economy, but increased scrutiny is needed on cost of prolonged ultra low rate environment

• If Oil prices continue to fall and clearly push down Japan's inflation, that could impact inflation expectations

• No preconception on what policy decision will be made in October

• Investors risk aversion easing somewhat due to progress in US-China trade negotiations

• Excessive fall in super-long yields could hurt consumer sentiment by lowering returns of pension, insurance funds

• Overseas economic slowdown yet to affect Japan's domestic demand

Calling economic and financial market signals for the economic outlook “mixed,” Minneapolis Federal Reserve Bank President Neel Kashkari signaled that he is likely to support further reductions in U.S. interest rates to support growth.

Trade tensions are making businesses cautious, he said, and the inversion of the U.S. yield curve that this week sent global stocks plummeting “is an indicator that people are nervous.” At the same time, the jobs market is strong, and so is consumer spending.

As Fed policymakers gear up for their September rate-setting meeting, he said, they will be assessing all of the data to make a decision. “I am leaning towards the camp of, ‘yes we need to give more stimulus to the economy, more support, we need to continue the expansion and not allow a recession to hit us,’” he said.

• Global growth headwinds justified last week's rate cut

• Trade uncertainty has amplified, could chill business investment

• Doesn't see the economy heading into a recession

• Continued headwinds from trade, lower policy rates from other central banks could justify lower rates

• Rate cut may help to maintain inflation goal credibility

• 2019 inflation may fall short of target

• Fed needs to tread carefully to sustain US expansion

• Any adjustment in policy would be in response to incoming data

• Current trade disputes could become entrenched

• That could alter global trade patterns over the medium-term

• China selling US Treasuries not as big a threat as it is made out to be

• Flat US yield curve is a little bit worrisome

• Hopes that yield curve will steepen somewhat from here

• Chances of global or US recession is 'no higher than it ever was'

• Fed is close to achieving its goals

• Need to keep focus on price stability, employment

• US economy is in good shape

• Economy has rebounded pretty solidly after soft patch at the end of last year

• Sees mixed messages in Q1 GDP data

• Economy is well positioned to deal with challenges

• Business confidence in the US has rebounded

• Tariffs have had a small boost to inflation

• Larger tariffs will have a bigger impact

• I would prefer that we not take any stimulating position

• Judging by the projections, there is still room for rate increases.

• Monetary policy should now be neutral

• Fed rate close is at the lower limit of the neutral range

• So long as the economy is "running fine"

• Aim is to get Fed benchmark rate to so-called neutral level

• Slow approach to get to neutral is a good path for the Fed

• Expects economic growth in the region of 2.2% to 2.5% this year

• Doesn't expect inflation to exceed the 2% target

• fiscal stimulus reached zenith in 2018, spending bill alone added half pct PT to GDP growth

• economy also feeling cumulative impact of rate hikes

• was hoped that tax cuts would boost productivity, but unlikely to bump up

• sees US economy growth closer to 2pct in 2019

• headwinds to US include slower global growth

• Neutral Is Where We Want to Be

• Not Seeing Clear Signs of Overheating Economy, Nor Material Weakening

• U.S. Economy 'Beset by Increasing Uncertainties'

The president of the Federal Reserve Bank of Cleveland, Loretta Mester, in an interview with CNBC on the sidelines of an annual press conference hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, said that a strong US economic growth justifies further rate hikes.

"Given the economic growth remains above the trend, inflation at 2% and very low unemployment, it is clear that the Fed has good reasons for further tightening of monetary policy," Mester said.

Mester also said that, in her opinion, US GDP growth will reach almost 3% in 2018, followed by a slowdown in 2019 and 2020. In her opinion, a gradual rate increase is the best way.

• Staff Revised Up Slightly Expectation for 2018, 2019 GDP Growth

• Revised Up Slightly Unemployment Rate Forecast Over Next Few Quarters

• Saw Inflation Close to 2% Over Medium Term

• GDP, Unemployment, Inflation Risks As Balanced

• Fomc Will Still Produce Economic Projections Each Quarter

• Economic Growth Appears To Have Picked Up In Current Quarter On Household Spending

• History Has Shown Moving Rates Too Quickly Or Slowly Can Lead To Bad Economic Outcomes

• Changes To Fomc Statement Don't Reflect Any Change In Policy Views

• Do Not Want To Declare Victory On Below-target Inflation

• Wouldn't Say Anything Has Happened Since March To Change Thinking On Inflation

• Gradually Returning Interest Rates To Normal Level Best Way To Sustain Environment in Which Households, Businesses Thrive

• Unemployment and Inflation Are Low

• Main Takeaway Is That Economy Doing Very Well