MNI POLICY: Fed's Williams Says Policy, Economy in Good Place

By Jean Yung

     WASHINGTON (MNI) - New York Fed President John Williams reiterated Friday

that monetary policy is well situated to sustain the economic expansion,

speaking two days after the FOMC held interest rates and officials signaled they

could stay on hold through next year. 

     There are signs global growth is "stabilizing" after a slowdown and the Fed

will watch how Brexit negotiations will be resolved over the next few days,

Williams told students at Borough of Manhattan Community College, CUNY. 

     The economy is "performing about as well as we've seen in decades," he

said. Housing is picking up, consumer spending is very strong and the

unemployment rate could stay around its current five-decade lows, he said.

     Inflation has been very stable, "a little bit lower than we've wanted, but

we're close to our goals." He expects it to rise to the Fed's 2% goal "over the

next year or so." 

     Damage to U.S. manufacturing from slowing growth in China and Europe and

the dampening effect of U.S.-China trade talks on global investment motivated

the Fed's rate cuts this year, he said. 

     The Fed needs to be ready to reassess its position based on incoming data,

he said. 

--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

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