Feds Williams speaking on Bloomberg TV says:
- We are seeing some early signs consumers shifting spending patterns
- Consumer shifting more to services
- Expects spending pattern to continue this year
- With very high inflation , Fed needs to focus on bringing inflation down
- Labor market basically back to almost where it was pre-pandemic
- Fed needs to move expeditiously to a more normal policy levels
- We need to get back to more neutral level, but data will guide timeline for that
- Fed needs to reverse policy actions from March 2020
- Pace of rate hikes depend on path of economy, but 50 basis points at next meeting is a reasonable option
- The neutral rate is still in low 2% -2.5% range
- Fed has to key focus on real interest rates
- We need to get real interest rates back to more normal levels by next year
- Fed may need to go above the neutral rate depending upon inflation
- Those decisions will be made as the economy evolves
- As Fed tightenings policy, underline trend in inflation will peak soon and come down later this year
- Fed has to percent inflation goal, does not want to move above that
- Our monetary policy tool of interest rates is suited to current imbalances in the economy
- We need to get job openings down to a level consistent with maximum employment
- We can achieve a soft landing
- Fed is in a good place with monetary policy
- On the balance sheet, I do expect we will get that underway in June if we take decision in May
The US stocks futures implying a lower opening after Feds Williams as the prices drift to the downside in premarket trading
- S&P index -12 points
- Dow industrial average unchanged
- NASDAQ index -35 points
