Seven FOMC participants [in March] thought the federal funds rate at the end of this year should be higher than the median. As Fed speakers began talking after our April meeting, some news accounts suggested there had been a significant shift in Fed sentiment, as the commentary covering these speakers emphasized arguments for more aggressive tightening than that represented by the median. If you find this confusing, I have a simple piece of advice: Before you infer that the consensus has shifted so quickly, count to seven first!

Two rate hikes in 2016, that's my own call for that, if the data continue to be in line with my outlook, that's a slow and gradual increase this year.
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Timing's not really that important, you mentioned possibly two summer hikes, that would be a little bit more than I'd say is ... priced in to the dots certainly and the market expectations.

The official told reporters after his remarks to the conference that “I don’t comment on the number” of rate increases he thinks is likely for this year, saying forecasts that the Fed will release at the June FOMC meeting would convey that information.

Meanwhile, Bullard noted he had been critical of the Fed's "dot plot" summaries of policymakers rate outlooks recently, saying they may be giving too much forward guidance, removing the Fed's ability to make data-dependent decisions.

“I think that the data to my mind are lining up to make a good case for rate increases in the next few meetings, not just June, which means it’s very live in terms of that,” Mr. Williams said Tuesday in an interview with reporters and editors of The Wall Street Journal.

“If we stay on the good path which we’re on, then if we were to raise two or three times this year it wouldn’t be that much of a surprise,” Mr. Williams said.

San Francisco Federal Reserve President John Williams said that he would support an interest-rate hike in June as long as he sees continued progress on the economy, inflation and jobs.

If inflation keeps rising toward the Fed's 2-percent target, economic growth rebounds toward his 2-percent forecast for the year, and job gains continue to be strong, "it would be appropriate" to raise rates in June, Williams said in an interview on Bloomberg Radio.

The United States could see two further interest rate rises this year but uncertainties abound including the impact on the U.S. economy should Britain vote to leave the European Union, Atlanta Fed President Dennis Lockhart said on Tuesday.

"Two rate hikes are certainly possible. We have enough (Fed policy) meetings remaining but it depends entirely on how the economy evolves," Lockhart told reporters in Amelia Island, Florida.

While Lockhart said markets should put more probability on June being "a real option", he did little to signal that he felt the economy would be sufficiently settled for a June increase.

While I believe that gradual federal funds rate increases are absolutely appropriate, I do not see that the risks are so elevated, nor the outlook so pessimistic, as to justify the exceptionally shallow interest rate path currently reflected in financial futures markets. The forecast for economic variables contained in the most recent Fed policymakers’ Summary of Economic Projections is consistent with my own estimate – GDP growth slightly above potential and a continued slow decline in the unemployment rate.

Furthermore, I would point out that the extremely shallow rate path reflected in the market for federal funds futures seems at odds with forecasts by private sector economists and by financial firms that serve as counterparties to the Federal Reserve (the so-called primary dealers), as well as my own forecast for the U.S. Economy. Most of these forecasts envision a much healthier U.S. economy than is implied by that unusually shallow path of the funds rate, and many of the major private forecasters expect short-term rates to rise more rapidly than implied by financial futures.

My concern is that given these conditions, an interest rate path at the pace embedded in the futures markets could risk an unemployment rate that falls well below the natural rate of unemployment. We are currently at an unemployment rate where such a large, rapid decline in unemployment could be risky, as an overheating economy would eventually produce inflation rising above our 2 percent goal, eventually necessitating a rapid removal of monetary policy accommodation. I would prefer that the Federal Reserve not risk making the mistake of significantly overshooting the full employment level, resulting in the need to rapidly raise interest rates – with potentially disruptive effects and an increased risk of a recession.

After years at the effective lower bound for short-term interest rates, economic conditions have finally warranted the start of U.S. monetary policy normalization. But these monetary policy adjustments are likely to be gradual and cautious, as we continue to face significant uncertainties and the headwinds to growth from the financial crisis have not fully abated.

One reason I am let's say supportive of a patient and cautious posture is because I don't think the (Fed) is behind the curve particularly as it relates to inflation.

Based on what I have seen, I am not going to be advocating a move in April -- I have changed my view.

My own view, as I will discuss today, is that the medium-term U.S. outlook has not changed materially since December. If anything, inflation seems to be returning to our 2 percent goal somewhat more rapidly than expected. As a result, my sense is that the less leisurely but still gradual pace of target rate increases that FOMC participants submitted at year-end is still more likely to be appropriate.