Fed's Williams: Fed needs 'prudence, patience and good judgement'

Author: Adam Button | Category: Central Banks

Comments from NY Fed President John Williams

  • Europe and Asia lead to less optimism about world growth
  • Doesn't see worrying signs of inflation pressure
  • Will reassess balance sheet policy if conditions change
  • High growth would warrant somewhat higher rates
  • Tailwinds have lost gust; rates closer to normal
  • Shutdown, geopolitical uncertainty emerging headwinds
  • US GDP growth about 2.0-2.5% in 2019 vs 3.0% in 2018
  • Motto of data dependence more relevant than ever
  • Labor market strong

Once again, the key word is 'patience'. There's a near-unanimous consensus among Fed officials on the need for patience, which is a code word for waiting at least a few months before hiking.

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