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- Fixed IncomeImportant- Source: Newswires