Fed’s Williams flags cautious optimism amid lingering uncertainty
Source Fxstreet
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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