MNI BRIEF: Fed's Williams Says Policy In Good Place - BBG TV

The Federal Reserve has short-term interest rates in a good place but it remains an open question whether rates are sufficiently restrictive to bring inflation down to 2%, New York Fed President John Williams said Thursday

"I think we've gotten monetary policy to a very good place in terms of we have a restrictive stance of policy. It is doing, having the desired effects and bringing demand and supply more into balance. We're seeing inflation moving in the right direction. But we'll have to watch that going forward," said Williams, the vice chair of the FOMC, in an interview with Bloomberg. "We'll have to keep watching the data carefully, analyzing all of that and really asking ourselves the question, is this sufficiently restrictive? Do we need to maybe raise rates again to make sure that we're keeping that steady progress in terms of getting the imbalances, the shrinking imbalances in the labor market and bring inflation back down?"

"I see positive signs in the sense that the indicators of demand and supply are moving in the right direction," he said in an interview with Bloomberg. (See: MNI INTERVIEW: Hawkish Fed Pause In Sept - Ex-Staffer Trezzi)