October 10, 2024 15:09 GMT
FED: Williams Repeats Appropriate To Continue Moving To More Neutral Stance
FED
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NY Fed’s Williams (voter) has delivered keynote remarks with main takeaways that appear similar to his recent interview to the FT. Highlighting the data dependency approach, the speech is titled “All about Data”.
- “[B]ased on my current forecast for the economy, I expect that it will be appropriate to continue the process of moving the stance of monetary policy to a more neutral setting over time.”
- “The timing and pace of future adjustments to interest rates will be based on the evolution of the data, the economic outlook, and the risks to achieving our goals.”
- “There’s still some distance to go to reach our goal of 2 percent, but we’re definitely moving in the right direction.”
- Researchers at the New York Fed saw the labor market at mid-year about where it was in early 2018, "a period of solid labor market conditions and low inflation," Williams said, predicting compensation growth should soon return to pre-pandemic levels.
- Forecasts: "I expect real GDP to grow between 2-1/4 and 2-1/2 percent this year and to average about 2-1/4 percent over the next two years. I anticipate the unemployment rate to edge up from its current level of about 4 percent to around 4-1/4 percent at the end of this year and stay around that level next year. With the economy in balance and inflation expectations well anchored, I expect overall PCE inflation to be around 2-1/4 percent this year, and to be close to 2 percent next year."
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