New York Fed President and FOMC member John Williams said on Thursday that as the Fed tightens its monetary policy settings, the underlying trend in inflation will peak soon and ease later in the year, according to an interview with Bloomberg TV.
Additional statements:
- The Fed has an inflation target of 2% and doesn’t want it to go above that.
- It will be a challenge to reduce inflation while keeping the labor market strong.
- Our interest rate monetary policy tool adapts to current imbalances in the economy.
- We need to reduce job openings to a level consistent with maximum employment and remove “the foam.”
- We can make a soft landing.
- The Fed is in a good place with monetary policy.
- “On the balance sheet, I expect we will kick-start reductions in June if we make a decision in May.
- There has already been a large tightening of financial conditions in anticipation of future balance sheet and rate movements.
- Later down the road to the second round of the balance sheet is when we will contemplate whether or not we need sales of mortgage-backed securities.
Source: Fx Street
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