SF Fed President John Williams reiterated the dovish argument
- Economy showing signs of improvement, it still faces “serious menaces”
- Fed will likely have to continue its so-called quantitative easing “well into the second half of next year.”
- Likely continue needing to purchase MBS & treasuries well into 2nd half of 2013
- Fed still has scope to stimulate economy without igniting inflation
- Unemployment well above Fed mandate, inflation is below
- Fed’s policies having the desired effect
- Sees Unemployment above 7pct through at least end of 2014, only slightly below 2pct next few years