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Talking Points:

• Bullard reiterated the case for normalizing Fed policy is strong

• Known for her hawkish stance, George says unrealistic to wait for perfect conditions

• Both Fed Presidents think policy will remain accommodative even after first hike

St. Louis Fed President James Bullard and Kansas City Fed President Esther George gaveseparate speeches today discussing monetary policy and the economy. Today’s comments from the two Fed Presidents come on the back of a series of commentary from Fed Presidents of hawkish remarks following the September 18 FOMC decision to hold policy. Most notable was yesterday’s lecture given by Fed Chairwoman Janet Yellenwhere she offered the most detailed case for a rate hike giving a boost to the US Dollar though US equities held steady through Friday’s close.

In Friday’s remarks Bullard reiterated the case he made, in his speech earlier in the week, for the normalizing of Fed policy being quite strong. Bullard does not have a vote in 2015 but will be a voting Committee member in 2016. George has not been a voting FOMC Committee member since 2013 but will regain the right as the Kansas City district head once again in 2016. She is known to be more hawkish and has already stated her support for hikes in past months. In 2013, the last time she was a voter, she dissented against further easing in seven of eight Fed meetings.

Highlights from St. Louis Fed President James Bullard’s September 25th speech in St. Louis:

• Voiced concern over global turmoil, and low inflation

• Prudent monetary policy demands gradual rate hikes

• Fed to have very easy policy next few years

• FOMC policy still “Stuck in Emergency Mode’

• It’s time to get off emergency Fed policy settings

Highlights from Kansas City Fed President Esther George’s September 25th speech in Omaha:

• Inflation looks to be firming in US

• Economy not ready for ‘normal’ rates yet

• Waiting for perfect rate conditions is not realistic

• Policy to remain accommodative for some time

• Supports raising interest rates

Upcoming Speeches Next Week from Central Bank Officials:

(Mon 9/28 at 12:30 GMT) Fed’s Dudley Speaks

(Mon 9/28 at 17:30 GMT) Fed’s Evans Speaks

(Mon 9/28 at 21:00 GMT) Fed’s Williams Speaks

(Wed 9/30 at 12:00 GMT) Fed’sDudley Speaks

(Wed 9/30 at 19:00 GMT) Fed Chairwoman Yellen Speaks

(Thu 10/1at 00:00 GMT) Fed’s Brainard Speaks

(Thu 10/1 at 07:00 GMT) ECB’sJazbec Speaks

(Thu 10/1 at 13:30 GMT) ECB’s Draghi Speaks

(Thu 10/1 at 18:30 GMT) Fed’s Williams Speaks

(Fri 10/2 at 12:30 GMT) Fed’s Fischer speaks

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