More Williams: monetary policy is clearly working how Fed wants it to work
Monetary policy is clearly working health that wanted to workRussia 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 policyAt some point interest rates will need to come downDoes not feel urgency to act on monetary policyDoesn't need to be exactly at 2% to cut ratesExpects to squarely hit 2% inflation in early 2026Rate hike are not baseline forecast.Fed will take whatever action needed to lower inflationWilliams 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 points5-year yield 4.567%, -7.5 basis points10 year yield 4.55%, -7.4 basis points30-year yield 4.682-6.2 basis pointsUS 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 levelsLetting data drive policy is best Fed can doAmid uncertainty about when rate cuts start, unclear how much easing will be neededR-star estimates want a bear heavily on rate change to liberation's This article was written by Greg Michalowski at www.forexlive.com.
- 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
