© Archyde.com Important remarks by Fed member Williams on interest and inflation cuts
Arabictrader.com – New York Fed member John Williams said on Tuesday that if inflation falls we will have to withdraw, but the Fed is data-bound, Williams also mentioned the following points:
- Inflation is still well above our 2% target, and it appears that inflation is falling mostly in commodities.
- Some basic services inflation except for housing has yet to move.
- The US Fed has taken action, and now we need to monitor data on retail sales and other data.
- We’ll see what we need to do regarding further rate hikes by evaluating the data.
- The policy is somewhat restricted at the moment.
- Another rate hike is a reasonable starting point but the Fed’s decisions are data driven.
- I expect the US economy to grow at a modest rate this year.
- We really need to see core inflation come down.
Commenting on the American, a member of the American Federal Reserve touched on the following:
- We see some slowdown in labor demand, but it is still high.
- Job growth remains very strong.
As for the banking system in the United States, Williams reported the following points:
- It is too early to see changes in the terms and availability of credit, and no strong signs of these effects are being seen yet.
- The banking system has now stabilized following the recent stresses in the financial sector.
- Bank failures added to the uncertainty in the outlook.
