More from Fed's Williams: Arguments for adding policy accommodation have strengthened
NY Fed President John Williams
- uncertainties around the trade, global growth have not improved (dovish)
- he does not see uncertainties shifting in a positive direction (dovish)
- market expectations of rate cuts are showing up in easier financial conditions (dovish)
- data suggest that labor markets are not as tight as they used to believe (dovish)
- he has lowered his view of the natural employment rates (fit to dovish)
- issues facing Fed include uncertainties around the US economy, growth going forward, inflation below goal (dovish)
- he is watching inflation carefully, including possibility of inflation expectations falling (neutral with dovish slant)
- he sees US interest rates as neutral (neutral)
- not seeing upward pressure on wages, inflation (dovish)
If poilicy is neutral, the next step is being more accomodative.
We heard the Fed Chair admit that the neutral rate of employment was lower than the Fed expected. Williams is saying the same. If you take each comment above and put dovish or neutral, you would have a lot of dovish.