Fed's Williams: Inflation is still way too high

Fed Williams in a Wall Street Journal interview

• There are crosscurrents in current economic data Economic Data Economic data typically comes in the form of news releases that are disseminated daily. This information is extremely valuable to retail and institutional forex traders, given the influence such data has on currency rates.Most of the major economic events that are released are reported by sovereign governments throughout the globe. Moreover, there are several economic data points that are released by private organizations that can also move the market.By and large, when new information becomes a Economic data typically comes in the form of news releases that are disseminated daily. This information is extremely valuable to retail and institutional forex traders, given the influence such data has on currency rates.Most of the major economic events that are released are reported by sovereign governments throughout the globe. Moreover, there are several economic data points that are released by private organizations that can also move the market.By and large, when new information becomes a Read this Term
• Labor market has remained very strong
• Overall picture is similar to where it was in July
• Some positive momentum into 2nd half of 2022
• Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term still way too high
• Our focus is on getting inflation back down, far too high
• We will look across the data ahead of next meeting including inflation, employment data, job openings, and others
• Very focused on drivers of inflation, given that that's number 1 problem
• We clearly have an imbalance in the economy
• We need to slow demand enough to meet supply
• We will weigh all of this in the next meeting. Decision will be dependent on totality of the data
• Have to think about where we want to see interest rates both this and the next year
• We need to think about the path of the policy
• We need to get real interest rates above 0
• Demand is far exceeding supply
• We are not at restrictive policy yet
• We need to get interest rates higher than longer run neutral level
• Baseline case is that rates need to go somewhat above 3.5%
• Financial conditions have tightened quite a bit since beginning of the year
• That tightening is consistent with Fed's direction on policy
• We need to be very focused on getting inflation back down to 2%
• need to mitigate risk of high inflation becoming entrenched
• there will be a time when policy actions will change
• we will need restrictive policy for some time
• next year we are going to need to have restrictive policy for some time
• I see us needing to raise and hold interest rates through next year
• Will take some time before seen adjustment of rates downward
• inflation expectations are well anchored. Will take us a few years to get back to 2% inflation. We will get it done