Fed's Williams
- Monetary policy is clearly working health that wanted to work
- Russia war on Ukraine important inflation driver.
- Economy is doing really well.
- Isn't worried about the actions of other central banks.
- Does not know when fed will change monetary policy
- At some point interest rates will need to come down
- Does not feel urgency to act on monetary policy
- Doesn't need to be exactly at 2% to cut rates
- Expects to squarely hit 2% inflation in early 2026
- Rate hike are not baseline forecast.
- Fed will take whatever action needed to lower inflation
Williams is speaking at the Economic Club of New York.
Looking at the US debt market (12:34 PM ET), yields are trading near low:
- two year yield 4.929%, -5.6 basis points
- 5-year yield 4.567%, -7.5 basis points
- 10 year yield 4.55%, -7.4 basis points
- 30-year yield 4.682-6.2 basis points
US stocks remain negative:
- Dow Industrial Average average -313 points or -0.1%
- S&P index -14.62 points or -0.28%
- NASDAQ index -81.6 points or -0.49%
More from Williams:
- There are lots of indications job market cooling to decent levels
- Letting data drive policy is best Fed can do
- Amid uncertainty about when rate cuts start, unclear how much easing will be needed
- R-star estimates want a bear heavily on rate change to liberation's
