- Reducing bond purchases later this year and ending them mid-2014 is best course forward
- When and how Fed adjusts depends on outlook for jobs and inflation
- Tapering will not mean Fed is tightening
- Clearly we are getting closer to meeting our test of substantial improvement in labour market (Are we??)
- Low employment to population ration is sending a much too pessimistic signal on labour
- Unemployment rate is probably overstating the extent of labour market
- Expects unemployment to decline over next few years and inflation to rise back to 2%
- Sees US 2013 GDP at 2% and 3% in 2014
Looks like John Williams is still holding out for the data to save Bernanke’s arse on tapering. Dream on pumpkin, dream on.
