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Williams - Cuts When Confident Prices Sustained Toward 2%

FED
  • (MNI) WASHINGTON -- New York Fed President John Williams on Wednesday said he expects the central bank to keep a restrictive stance for some time and to begin rate cuts only when confident inflation is moving toward 2% on a sustained basis, also noting a slowing of QT does not seem to be close.
  • "My base case is that the current restrictive stance of monetary policy will continue to restore balance and bring inflation back to our 2% longer-run goal," he said in prepared remarks. "I expect that we will need to maintain a restrictive stance of policy for some time to fully achieve our goals, and it will only be appropriate to dial back the degree of policy restraint when we are confident that inflation is moving toward 2% on a sustained basis."
  • "Our policy decisions will be made meeting by meeting and will follow another rule of three: by looking at the totality of the incoming data, the evolving outlook, and the balance of risks," Williams said. "The data indicate that we are clearly moving in the right direction. However, we still are a ways from our price stability goal."

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