Comments from Tarullo

  • Tarullo says the reaction 'to this point' has been as expected
  • Financial system well prepared for Brexit shock
  • We'll have to watch how Brexit plays out
  • Three will be some impact in the UK, no one knows the scale

On interest rates in the US:

  • I don't believe in 'normalization'
  • Recent jobs creation shows there was more slack in jobs market than believed
  • "This is not an economy that's running hot"
  • The neutral rate of interest rates has come down quite a bit
  • We have tools to respond pickup in economy; if it were to slow down our tools our limited
  • For some time now, I have thought it was the better course to wait and see if inflation rose to 2%
  • For some time now, I have not seen evidence of inflation rising to target
  • I would want to be more convinced the underlying rate of inflation is 2%
  • I'm not convinced that 2% underlying inflation is coming but that data may come

He's speaking with Jon Hilsenrath and Jacob Schlesinger at the WSJ.