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ACG, FEI and CFA members and FRB executives gather for Nov. 9 event
In formal comments Nov. 9, the interim president and CEO of the Federal Reserve Bank of St. Louis pointed to the pandemic's affects and the Fed's reaction to loosening, then tightening, monetary policy when inflation rose to recent highs.
"The Fed did not slam the brakes on the economy, but did expeditiously firm policy to bring inflation under control with as little negative impact on the real side of the economy as possible," said Kathleen O'Neill Paese, the Fed St. Louis executive, at the event in Jeffersonville, Indiana.
The program drew about 140 members and strategic partners from ACG Kentucky, FEI Louisville and CFA Society Louisville plus FRB board members and guests.
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Paese covered a number of topics (click here for her remarks). Slides accompanying her presentation are here.
"Monetary policy today remains modestly restrictive but not overly tight. At its most recent meeting on November 1, the FOMC reaffirmed its commitment to achieving 2 percent inflation. Although the Committee did not increase its target for the federal funds rate at that meeting, it left the door open for further policy firming if necessary for achieving 2 percent inflation. At the meeting, I expressed support for both aspects of the decision—that is, for maintaining the target for the federal funds rate and for retaining the option of further firming if necessary for restoring price stability," she said.
"I’m optimistic that we can and will achieve price stability, but we’re not quite there yet and we should not declare victory and release the monetary brake prematurely. Price stability is critical for achieving maximum sustainable employment and a strong economy. Therefore, we must remain vigilant until inflation is clearly and convincingly well on its way back to target."
Paese also participated in a fireside chat with FRB Louisville market SVP Seema Sheth and answered questions about inflation targets and her experience as the interim CEO/president for the Federal Reserve Bank of St. Louis.
Some news stories generated by her appearance in Louisville include:
Stephen Schmidt, Louisville Business First:
https://www.bizjournals.com/louisville/news/2023/11/10/kathy-paese-federal-reserve-bank-st-louis-2023.html?utm_source=st&utm_medium=en&utm_campaign=ae&utm_content=LO&j=33331509&senddate=2023-11-10&empos=p4 (Subscription may be needed to access the story.)
Jeffry Bartash, MarketWatch:
Fed’s Paese says more data on inflation needed before deciding on another rate hike
Michael Derby, Reuters (Nov. 9, 2023, 11:44 a.m. CT)
Interim St. Louis Fed chief keeps alive possibility of more rate hikes
Jonnelle Marte, Bloomberg (Nov. 9, 2023, 12:20 p.m. CT)
Fed’s Paese Says She Backed Rate Pause, May Need to Tighten More
Video on Bloomberg YouTube:
Paese Says Fed Might Have to Tighten More - YouTube
A version of this story appears on the FEI Louisville website.