New York Fed President and influential FOMC member John Williams he said on Monday that demand in the US economy far outstrips supply and the Fed’s monetary policy may bring it back in line with supply, Reuters reports.
Additional statements:
“We’re seeing inflation across a broad set of goods.”
“Without price stability, you won’t get the growth and job opportunities that you would otherwise.”
“We are starting to see some impact of inflation on spending behavior.”
“MBS cap of $35 billion is a ‘big number.'”
“We don’t expect to hit the MBS limit every month.”
“At this time we are not focused on the possible sale of MBS, but it is an option that we could consider in the future.”
“Future MBS sales could be an option to bring the balance closer to the long-term target of most Treasuries.”
“The balance sheet reduction itself will happen in the next few years.”
“The balance sheet will still be higher than it was 10 years ago.”
“The best position to be in is to own mostly Treasuries and we’re nowhere near that.”
“Buying both MBS and Treasuries has had a stronger effect on overall financial conditions than buying Treasuries alone.”
“Buying MBS has proven to be a powerful tool.”
“We have clearly indicated that our primary tool is the fed funds rate.”
Source: Fx Street
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