Monetary policy

In their latest economic forecasts, 12 of 19 Fed officials said they expect to raise rates once more this year. 

Speaking in an interview following the G-20 summit in New Delhi, Treasury Secretary Janet Yellen said she is optimistic that the United States will be able to tame inflation without dipping the economy into recession.

Federal Reserve Chair Jerome Powell said inflation relief from the housing sector is "in the pipeline" but some say strong underlying demand and an inadequate housing supply could disrupt future rate pauses or cuts.

The Federal Reserve has been reducing its liabilities steadily since last March, and those effects are starting to be felt. But how low it should ultimately go — and how long it can stay low — is a tricky question.

The reserve bank formally kicked off its search to replace former President James Bullard, who held a doctorate in economics and was lauded for his communication skills.

In his highly anticipated speech in Jackson Hole, the Federal Reserve chair acknowledged the progress made in cooling down inflation, but said the central bank would not hesitate to raise rates further if needed.

Federal Reserve chair Jerome Powell is expected to tout the economy's brightening prospects while communicating to markets that the central bank's fight against inflation is not yet over in his address at an economic summit in Jackson Hole, Wyo. on Friday.

Key data points have shown price and wage pressures continue to dissipate, which should bolster the case for an end to rate increases, but strong labor-market activity may keep policymakers uneasy.

Federal Reserve Bank of Richmond President Thomas Barkin said the greater-than-expected easing in inflation in June may be an indication that the U.S. economy can have a "soft landing," returning to price stability without a damaging recession.

"I haven't made up my mind for what should happen in September," Goolsbee said.