Fed’s Williams answers audience questions:
- Says Fed policy is ‘driven by US economic concerns’ – says we consult with other central banks but our policy goals are US focused
- Fed does not aim to ‘stabilize’ other countries
- Monetary policy is a very blunt instrument
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I expect the middle comment will get the tin hats very excited indeed.
But wait, there’s more:
- Ukraine situation is mostly a geoploitical risk rather than a direct economic one
- Expects the unemployment rate will come down over the next few years to a more normal level, of around 5%
- Expects 2 – 2.5% GDP growth, above trend growth
- Says Yellen encourages discussion, debate on FOMC