Minneapolis Fed President Neel Kashkari noted that Fed “officially have a symmetric target” on inflation. Actual inflation has “averaged around 1.7%” for the past seven years, which was below the 2% target. Therefore, “if we were at 2.3% for several years that shouldn’t be concerning.” He also emphasized that “we should really live the symmetric target and not tap the brakes prematurely.” Thus, “this is why I’ve been arguing for more accommodative monetary policy.

Kashkari also said he’s “concerned” with yield curve inversion. However, he added: “I don’t necessarily believe it causes recessions but i believe it’s giving feedback that monetary policy is close to neutral today. We don’t want contractionary monetary policy unless we have good reason. We should be careful not to end the expansion.”

Fed Vice Chair Richard Clarida said “the current economic expansion almost certainly will become the longest on record”. But ” incoming data have revealed signs that U.S. economic growth is slowing somewhat from 2018’s robust pace”. Also, “prospects for foreign economic growth have been marked down, and important international risks, such as Brexit, remain.” On inflation, core PCE, a “better gauge of underlying inflation pressures”, has been muted. And, “some indicators of longer-term inflation expectations remain at the low end of a range” of price-stability.

Clarida reiterated that federal funds rate is now “in the broad range of estimates of neutral”. The baseline economic projections see growth in 2019 “running somewhat above” trend and core PCE inflation remains near 2%. Thus, Fed “can be patient as we assess what adjustments, if any, will be appropriate to the stance of monetary policy.

Clarida’s full remarks.

St. Louis Fed President James Bullard said if economy evolves as expected, current interest rate will be appropriate through 2019. Balance sheet reduction program will end this autumn. “These events mark the end of monetary policy normalization in the U.S.”

Bullard said the normalization campaign has been “largely successful”. Nominal short-term interest rates have been raised from near-zero levels, and the size of the Fed’s balance sheet has been reduced as the economic expansion has continued.

Going forward, the FOMC may elect to adjust monetary policy going forward. However, Bullard said that will not be “part of an ongoing normalization strategy”. Adjustments will be “in response to incoming macroeconomic data”.

On yield curve inversion, Bullard said “yield curve information is not infallible, and inversion could be driven by other factors unrelated to future macroeconomic performance”.”Nevertheless, the empirical evidence is relatively strong. Therefore, both policymakers and market professionals need to take the possibility of a meaningful and sustained yield curve inversion seriously.”

Press release on Bullard’s presentation.

New York Fed President John Williams said in a speech that US is “closing in on the longest economic expansion on record, unemployment is at historically low levels, and inflation is close to our 2 percent target “. And, from a “pure monetary policy perspective”, this is a “healthy economy”.

However, he also noted that Fed’s monetary policy decisions ” don’t affect the kinds of jobs that are created or who benefits from growth.”

William’s full speech here.

Minutes of March 19-20 FOMC meeting released overnight solidify Fed’s patience stance. Additionally, the minutes indicated that some members are open to rate cut if incoming data and development warrant so.

It’s noted that a “majority” of participants expected that evolution of economy and risks would likely warrant leaving interest rate unchanged for the rest of year. Some of them noted current interest rate was “close to” neutral.

At the same time, participants continued to “emphasize” decisions at coming meetings would depend on their ongoing assessments of the economic outlook and how risks evolved. “Several” participants noted their view on interest rate “could shift in either direction based on incoming data and other developments.”

Full minutes here.