Fed's Williams (voter), when pressed, says Fed has not said it is done raising rates, but has made "incredible progress on monetary policy"
- Will raise rates again if needed.
- Don't see any reason to cut rates this year.
- Not seeing a wage-price spiral today.
- Structural shifts will not impair the Fed's work to return to the inflation target.
- Possible US economy has more underlying strength; risks to both up and downside.
- Seeing signs of further tightening of credit; expects credit contractions will affect economic growth.
- Doesn't see tighter credit knocking the economy totally off course.
- Tighter credit may blunt how far the Fed goes with rate hikes.
- Wage growth has slowed, but has now stabilised at a high level, suggesting labour market is still very strong (AHE are currently running at a 6% annualised rate, Powell said at the FOMC he wants wage growth to get to 3%).
- Acute phase of banking stress is likely over.
- Falling rent inflation will weigh on CPI.
- Fed is very focused on commercial real estate (CRE) risks.
Analysis details (17:31)
- These comments are being made alongside his speech at the Economic Club of NY.
09 May 2023 - 17:17- Important- Source: Newswires
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