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.