Federal Reserve Bank of New York President John Williams noted on Wednesday that the Fed’s future monetary policy decisions will depend heavily on economic data. He highlighted the significant uncertainty facing the Fed, much of which stems from potential changes in government policy.
Key Quotes
Monetary policy data-dependent in highly uncertain environment.
Government policy outlook main source of uncertainty.
Monetary policy ‘well positioned’ for economic outlook.
Disinflation process to continue, could be choppy.
Improvement in supply/demand balance allowed rate cuts.
Balance sheet drawdown proceeding smoothly.
Expects growth to moderate to 2% this year.
Expects unemployment rate to hold between 4%-4.25%.
Sees move to 2% inflation over coming years.
Housing related inflation pressures are easing.
Economy has returned to balance.
Inflation expectations are anchored.
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