SF Feds Williams: US economy improving broadly across sectors

Author: Greg Michalowski | Category: Central Banks

Feds Williams speaks at an event in Los Angeles

The SF Fed President Williams is speaking at an event in Los Angeles.  He is more of a hawk.

He says:
  • US economy improving broadly across sectors
  • Global economy very good and improving
  • Financial conditions still overall are supportive of growth
  • Despite tailwinds the use US economic outlook is no different than prior years
  • To keep the economy going we mustn't let the economy overheat
  • the US labor market looks very strong and we are seeing some pickup in wage growth
  • Sees inflation picking as transitory factors begin to fade.
  • The Feds guidances calls for gradual rate hikes and he expects that too
  • Would have to reassess policy if inflation came out stronger.
  • Tax cuts will have a moderate economic growth impact over the next several years
  • Aim to keep economy in balance to avoid overheating
  • Bitcoin doesn't meet litmus test of national currency
  • Fed is not looking into developing a digital currency
  • Financial System Now Looks Good, well-capitalized
  • A challenge for China to manage debt buildup
  • Fed needs to prepare to have tools for next recession
The USDJPY is getting a bit of a boost off comments. It trades back above the 50% of the range since Feb 16 and looks to test trend line resistance and the 200 hour MA at 106.90.

In addition, with less than 30 minutes left until the stock market close, the major indices are on fire.

  • S&P index is up 1.43%
  • NASDAQ composite index is up 1.60%
  • Dow industrial average is up 1.15%

Happy days are here again as the major indices continue the recovery from the February 9th low.