Federal Reserve Bank of New York President John Williams Q&A now.
Earlier:
In that post I mentioned that Williams did not drop any clue on whether her favours a +25 or +50bp rate hike at the next FOMC meeting. In the Q&A he still hasn't.
- Very important for public to understand Fed's desire to lower inflation
- Market pricing roughly consistent with Fed''s rate outlook
- Made sense for fed to slow rate rises in December
- Won't prejudge size of rate rise at upcoming FOMC meeting
- Fed still has a ways to go on rate rises
- Rate hike cycle stopping point depends on data
- Job market has been more resilient than expected
- Base case is that neutral rate stays low going forward
- Over longer run, inflation levels are determined by central banks
- Fed still faces challenges with core inflation readings
- There is still a lot of underlying demand for labor
- Inflation risks are still to the upside
- China's reopening will have a mixed impact on the global economy
- The end of lockdowns in China could tick global inflation higher
- addressing debt ceiling issues is the job of Congress
---
As head of the NY Fed Williams has a permanent vote on the Federal Open Market Committee (FOMC). He is also the Vice-Chair of the Committee (Powell chairs it).
Meeting dates this year:
