Fed Governor Lael Brainard told CNBC that “our monetary policy forward guidance is premised on outcomes not the outlook” Hence, “it is going to be some time before both employment and inflation have achieved the kinds of outcomes that are in that forward guidance.”

She acknowledged that the latest economic forecast is “considerably better outcomes both on growth as well as on employment and inflation.” But she reiterated, “that’s an outlook. We’re going to have to actually see that in the data. When you look at the data, we are still far from our maximum employment goal.”

Brainard also said it’s “really important to recognize” the rise in inflation is “transitory”. “And following those transitory pressures associated with reopening, it’s more likely that the entrenched dynamics that we’ve seen for well over a decade will take over.”

Minutes of March 16-17 FOMC meeting reiterated the assessment that it will take “some time” until “substantial further progress” is made towards Fed’s targets. The asset purchases will continue “at least at the current pace” until then. Also, if there would be any changes in the QE program, they would be communicated to the public “well in advance of time”.

“Participants noted that it would likely be some time until substantial further progress toward the Committee’s maximum-employment and price-stability goals would be realized and that, consistent with the Committee’s outcome-based guidance, asset purchases would continue at least at the current pace until then,” the minutes said.

Additionally, “a number of participants highlighted the importance of the Committee clearly communicating its assessment of progress toward its longer-run goals well in advance of the time when it could be judged substantial enough to warrant a change in the pace of asset purchases.”

“The timing of such communications would depend on the evolution of the economy and the pace of progress toward the Committee’s goals.”

Full minutes here.

Chicago Fed President Charles Evans said he’s “optimistic that the economy is poised for strong growth later this year.” By the end of next year, Fed’s goal of ful employment would be “within sight”.

However, “some even higher rates of inflation are needed to get inflation to average 2 percent and to solidify inflation expectations about that number,” he said. “So, I see the need for continued accommodative monetary policy to reach our goals.”

The conditions for tapering asset purchases, “will not be met for a while,” he added. “Policy is likely on hold for some time.”

Dallas Fed President Robert Kaplan said in a WSJ interview, “there’s reason to be optimistic about the future.” But he emphasized that “we’re not out of the woods yet”. And, “reducing stimulus when the pandemic abates and more economic progress is made will help keep the recovery going

“When we’re in the middle of a crisis, we should be aggressively using our tools, so I agree with what we’re doing now in terms of asset purchases and stance of policy generally,” Kaplan said

Cleveland Fed President Loretta Mester said in a CNBC interview that “we’ll see a very strong second half of the year”. However, ” we are still far from our policy goals,” referring Fed’s dual mandate.

The March non-farm payrolls report was a “great” one. But Mester added, “we need more of them coming our way.” “I think we need to be very deliberately patient in our approach to monetary policy.”

Mester was not concerned with this year’s rise in treasury yields. “I think the higher bond yields are quite understandable in the context of the improvement in the economic outlook. The increase has been an orderly increase,” she said. “So I’m not concerned at this point with the rise in yields. I don’t think there’s anything for the Fed to react to.”