Comments by NY Fed president, John Williams
- Economic indicators still show economy on a positive trajectory
- Economy may slow somewhat due to recent virus surge
- Sees a lot of downward pressure on inflation
- Inflation will be lower than what we want in the next few years
- Fed decision on rates, policy will depend on what happens with the economy
- Markets are reacting to the better outlook, not inflation
Despite the record number of virus cases this week, the Fed isn't all too concerned about its impact on the economy just yet. Then again, Williams appears a bit confused. The market isn't and hasn't been reacting to the "better outlook" but mostly to the BRRRR..
That said, the market is still in a state of flux this week in trying to digest the vaccine optimism and how long that might take to play out.
With much of the optimism already factored in for the remainder of the year, can investor greed still carry stocks to another fresh round of all-time highs before 2021?
