New York Fed president Williams (voting member)
The New York Fed president John Williams is speaking and tilted more toward the hawkish side:
- We are seeing broader based increases in inflation
- Even after taking into account basic facts, we have seen a pickup in underlying inflation in the US
- Long-run inflation expectations reversed earlier declines and are at levels seen in 2013 to 2014
- Supply constraints are a major factor on the labor market and supply chain bottlenecks
- Feds framework is well suited for this because it starts up from the point of making sure inflation expectations are anchored at 2%
- The economy is going back
- higher inflation is making it more expensive to put food on the table
- Fed's focused on making sure there is a strong healthy economy with low and stable inflation
- The rapid development in the crypto currency space and stable can provides opportunities for positive effects, but at the same time financial stability risks can be identified in that space
- cyber risks to the financial system are not going away
Dow industrial average is trading down -153 points. The NASDAQ index remains positive by 30 points. The S&P is currently up 4.64 points.
On November 12 Williams said:
- There are segments of the labor force that are more protected against inflation and others less so
- People on fixed incomes are less protected against inflation
- Fed officials have to understand the effects of climate issues on financial stability in terms of supervision and regulation
- Fed officials are focused on inequality and equitable growth because they are important to the economy
