Fed's Williams
- Inflation is moving towards 2%, expect further bumps
- Fed has made considerable progress
- Inflation to stand at 2.25-2.50% this year
- Expects inflation to settle back to 2% next year
- Expects US GDP to hit 2% ghis year
- Job market remains strong
- Housing very strong but doesn't see sign of a bubble
- Commercial real estate an area of concern, will take time to resolve
- Fed forecasts rate cuts starting this year
There is no change in tone here after yesterday's CPI but in February he said his inflation forecast was 2.00-2.25%. Now it's 2.25-2.50%.
More from Williams:
- There is a great deal of uncertainty over economy
- US economy has benefited from positive supply shock.
- Inflation fell faster than expected last year.
- Progress on inflation has hit some bumps with recent data being disappointing.
- Better to focus on trend for inflation
- Doesn't know exactly what lies ahead for monetary policy.
- The economy is in a good place right now.
- Monetary policy is well-positioned to achieve fed goals
- Does not see a financial stability crisis from commercial real estate.
US stocks are seeing some further upside with the S&P index now projected to rise by 7.29 points and the Dow industrial average up 25.99 points. The NASDAQ index is leading the way with a gain of 73 points in premarket trading.
- Fed working to make sure banks ready for discount window
- Access to the discount window is important during times of stress
- Banks should be ready for discount window before trouble arrives (the discount window was once thought as a lender of last resort place for banks to square their balances on a daily basis. The Fed used to shun banks from its use. Now they are saying that they encourage it more).
