A few points from Sunday NYTimes interview w....>

FED: A few points from Sunday NYTimes interview w NY Fed's Williams:

- NYT interviewer: "You've been a big advocate of moving early to forestall

risks, rather than waiting. Do you think that means lowering rates again before

the end of the year?"

- Williams: "I don't think that this issue - of the lower bound, and trying to

risk manage around it - is pertinent to a specific issue, of what decision we

should make at the coming meetings. It's really more about where the likely

trajectories of the U.S. economy are right now"

- Raises the question: if not now, then when is it pertinent? He wouldn't say

whether he had forecast a further cut in the September SEP dot plot.

- Sounds like Williams looking at balance sheet expansion more urgently than

before, and elsewhere in the interview, looking at standing repo facility.

- Williams: "We have learned something. Despite there being a lot of reserves in

the system, they weren't moving around. They're lumpy ... any view I had before,

based on all the research, and the outreach, and the surveys, my view would be

that - that level [of reserves needed going forward] is probably higher."