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Williams Reverts To Previous Comments

FED
  • Speaking after a speech in which NY Fed’s Williams’s remarks could have been seen as marginally more hawkish than previous comments from Jun 28, he repeats that he sees a July rate hike of 50bp or 75bp as the right positioning (Fed Funds futures currently 73bps).
  • He adds that rates are still well below where we need to be by year-end, with 3-3.5% the right thing to do, and a US recession is not his base case. Tighter financial conditions are starting to have an effect and he will closely watch data over the next 3-6 months for a better read.
  • It follows Bostic (’24 voter) fully supporting a 75bp hike at the July meeting in a move that won’t damage the economy.

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