The Pessimists

Minneapolis Fed President: Monetary Policy Too Tight, Not Too Easy
BankNews
"My own forecast, conditional on the FOMC’s current monetary policy stance, is that inflation will run below the Fed’s target of 2 percent over the next two years and the unemployment rate will remain elevated. This forecast suggests that, if anything, monetary policy is currently too tight, not too easy."

KC Fed President: We Can't Ignore Possibility That Extended Accommodative Policy May Create Future Financial Imbalances
BankNews
Although optimistic that the recovery is building momentum, Federal Reserve Bank of Kansas City President and CEO Esther L. George cautioned in a recent speech that becoming too sanguine about that the risk of financial instability and the risk of higher inflation can lull us into thinking we can avoid them.

Lacker on the Economy
Federal Reserve Bank of Richmond
“I see material upside risks to inflation in 2014 and beyond, given the current trajectory for monetary policy, though my baseline outlook is for inflation to move toward the Fed’s long-run goal of 2 percent in coming years,” said Jeff Lacker, president fo the Federal Reserve Bank of Richmond. Lacker also sees growth  will continuing into next year at an annual rate of around 2 percent, as many of the recent impediments to faster growth continue to restrain activity.

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