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Fed’s Williams flags cautious optimism amid lingering uncertainty

Fed’s Williams flags cautious optimism amid lingering uncertainty

New York Fed President John Williams struck a balanced tone in his latest remarks, highlighting strength in recent US data while acknowledging steady uncertainty around trade.

Key Quotes

  • Recent economic data has been very good.
  • The labour market is pretty much in balance.
  • First quarter growth was unusual on trade issues.
  • Inflation has been coming down slowly and gradually.
  • Key word for economy is uncertainty.
  • Monetary policy is in a good place.
  • Fed rate policy is well positioned, is slightly restrictive.
  • Some forward looking indicators are signaling concern.
  • Trade is a particular point of uncertainty.
  • Many firms, households in wait-and-see mode.
  • Fed has a ways to go in shrinking its balance sheet.
  • Fed balance sheet drawdown not affecting market prices.
  • Dollar remains the world’s reserve currency.
  • Global invetors still see US as a place to invest.
  • We are not seeing major changes in investor interest in Treasury bonds.
  • Consumers are still in good shape.

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