The Fed has previously forecast three increases for 2018.
Cleveland Fed President Loretta Mester, whom the White House is considering naming Fed vice chair, told the conference the central bank could begin to reassess the framework later this year, though she said the threshold for change should be high. The Fed seeks to manage interest rates to promote maximum employment and stable prices, which it defines as inflation rising at an annual rate of 2 percent.
Dish Network fell 2.4% after it revealed how many Sling TV subscribers it has for the first time as it looks to assure investors it can grow in new businesses while customers continue to drop their traditional television packages. Williams is a voter on monetary policy this year. He said the purchases may have resulted in less impact on yields than some studies had suggested but the programs also made forward guidance from the Fed more credible. Is the Fed on a preset course, and they'll hike rates only as much as they telegraph, or are they going to be more aggressive?
"We want more shock absorbers out there and really. the main shock absorber is the ability to reduce the fed funds rate, which means that you want to get to a higher inflation rate so that the pre-shock fed funds rate is 4 (percent) and not 2", said Paul Krugman, the Nobel Prize-winning economist and professor at City University of NY. "That is the key issue-not the magnitude of the effects of LSAPs or whether short-term interest rates should be the primary tool of monetary policy", Dudley said in the statement. Rate hikes are coming. The Fed had pushed the rate to a record low near zero in December 2008 as it struggled to contain a severe financial crisis and the deepest economic downturn since the Great Recession of the 1930s. Suddenly, the specter of four quarter-point rate hikes this year is rising.
The Fed is widely expected to raise rates when policymakers meet next month. The Fed's preferred measure of inflation has fallen short of its 2 percent goal for nearly six years, although recent data has shown signs of price pressures building amid a strong economy.
The CBOE Volatility index .VIX , a gauge of near-term stock market volatility, eased to a session low of 17.97 and below Friday's close of 19.46. It wasn't just stock investors, either. In a statement following its January meeting, the Federal Open Market Committee said it sees "further" interest rate hikes in 2018.
Gains in technology shares powered Wall Street's main indexes on Wednesday ahead of minutes of the Federal Reserve's most recent policy meeting.
European stocks were trying to tip higher along with USA equities (http://www.marketwatch.com/story/european-stocks-struggle-to-find-impetus-to-follow-us-lead-higher-2018-02-23), while Asian stocks rebounded (http://www.marketwatch.com/story/asian-stocks-slide-following-wall-street-selloff-2018-02-21) to mark a second-straight week of gains.