Fed Chairman Bernanke was quiet on the topics people wanted to hear about most at the <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Jackson Hole conference this past weekend?
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Ben Bernanke, Federal Reserve Chairman
The challenge for policy makers is to ensure that the benefits of global economic integration are sufficiently wide-shared - for example, by helping displaced workers get the necessary training to take advantage of new opportunities - that a consensus for welfare-enhancing change can be obtained. August 28, 2006
Perhaps thats because voting, non-voting, and non-US officials spoke very hawkishly earlier in the week?
Jack Guynn, Federal Reserve Bank of Atlanta President
Despite impressions to the contrary that have arisen in some quarters of financial markets, there has been no reduction in the Fed's commitment to keep price pressures contained. I don't accept for a minute we are less attentive to inflation. If I felt like inflation would move up and maybe even stay at current levels, rather than to move back down, I would be in the forefront of wanting to take additional policy action. August 23, 2006
Michael Moskow, Federal Reserve Bank ofChicago President
U.S. monetary policy-makers may have to raise interest rates further in order to bring inflation back into a comfort zone. Taking into consideration market conditions, the threat of a housing slowdown, the resilience of economic growth and high energy prices. My assessment is that the risk of inflation remaining too high is greater than the risk of growth being too low. August 23, 2006
Glenn Hubbard, former top economic advisor to US President Bush
I do believe policy had been too accommodative for too long. And now the question is, How do we deal with the current situation... It is easier to tighten into strength than it is to tighten into weakness when you had a policy that was that accommodative... [for this] is a very difficult moment for the Fed to achieve both the desired fall in inflation and the soft landing in the real economy at the same time. It's easy to do one or the other; it's a little more difficult to do both.... [but] I still expect the economy to be able to grow in the 2.5 to possibly the 3% range by the time we get into next year. August 26, 2006
Charles Bean, Bank of England Chief Economist
Speaking at the Fed's conference in Jackson Hole over the weekend, Bean warned about focusing on core inflation as opposed to headline inflation and said, the fact that the rise in oil prices is the flip side of the globalization shock to me renders highly suspect the practice of focusing on measures of core inflation that strip out energy prices, while retaining the (more transitory) falling goods prices. August 26, 2006
ECB: To Hike or to Hold?
Officials are keen to keep the option of tightening rates further on signs of solid growth?
Axel Weber, ECB Council Member
By all measures monetary policy is still very accommodative?as the economy strengthens we will continue to withdraw the monetary stimulation because the economy is increasingly standing on its own feet and gaining momentum?our decisions are characterized by the fact that we are not presently in a hurry. We are neither behind the curve nor ahead of it, we are just right. August 22, 2006
Lorenzo Bini-Smaghi, ECB Executive Board Member
Said that the ECB must act immediately if there are any signs of inflationary pressure, when speaking over the weekend, commenting that, "you can only have low interest rates long-term if the market believes in low inflation long-term. August 28, 2006
Michael Glos, German Economy Minister
I am hopeful Europe's largest economy could grow by more than the official forecast of 1.6% this year. I hope it will be more optimistic than our previous forecast. What I am pleased about is that things are more encouraging than before. We expect good growth this year. Germany is an engine of growth in the European Union. It is no longer an engine that stutters. August 28, 2006|
However, that growth may only reflect the current situation and not the future?
Gebhard Flaig, Ifo Executive Board Member
The marginal cooling down is attributable to the slightly less optimistic assessment of the outlook for the next six months. But companies were still positive about their current business situation. The German economy remains is very good shape. August 24, 2006
PBoC: All in Favor of Appreciation?
Everyone from the Central Bank to the government to international agencies agree that an increase in the yuan may be necessary to curb rapid growth?
Fan Gang, PBoC MPC Member
I don't think there are going to be dramatic changes in the current (foreign exchange) mechanism or policy. However, he also said, The interest rate (increase) itself may not be effective enough to slow down investment. August 24, 2006
Commentary in The Financial News, published by the PBoC
"The central bank should adjust interest rates in a timely manner in the future and even adjust the exchange rate if necessary to help maintain a balance between domestic and global policies and the domestic and global economies. August 28, 2006
Han Linghui, analyst at Ministry of Finance's Research Institute for Fiscal Science
Yuan appreciation pressure shows that its current level is distorted. Maintaining the current exchange rate level will have an impact on our economy that is not small." August 24, 2006
David Hawley, spokesman for the IMF
Additional monetary tightening would drain liquidity from the banking system and guard against continued rapid growth ? the Chinese authorities have taken important steps to slow credit and fixed-investment growth to more sustainable levels. However, economic activity remains strong, driven by net exports and investment, while inflation is low. August 24, 2006
