Fed's WIlliams: We still have some work to do to get inflation under control

• Asked about whether jobs data would change his view on terminal rates, he says December dot plot views are still 'very reasonable' due to totality of all data
• Fed will watch the data to determine path of rate rises
• There is a lot of uncertainty around 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 outlook
• Maybe services prices stay elevated, and if that happens we'll need higher rates
• Some underlying inflation numbers like Dallas Fed trimmed mean is around 3.75% and Fed funds is about 1 percentage point above that. To get sufficiently restrictive, you need to get higher than that.
• I broadly see financial conditions as having moved tighter
• I'm definitely seeing more positive signs on global growth and the US economy is also showing more resilience
• Demand is still very strong
• We're seeing a significant slowdown in housing, especially in permits but we're still seeing a lag in completions. So we might not see the construction sector job losses yet.
• Still seeing high demand for services and labor
• There may be some reasons to expect labor to loosen up
• Inflation expectations have stayed very well anchored
• Rent inflation looks to ebb over time

This was a candid appearance and Timiraos did a good job of probing on rates but he didn't tip his hand on hikes. He certainly kept the 5-5.5% range on the table but repeatedly highlighted data dependence. He did offer an encouraging take on the economy and I think that's ultimately what filters back into the rate outlook.