News list for " Liams"
The Federal Reserve's Williams said he believes interest rates will eventually decline.
Mr. Williams said that by shrinking the balance sheet, the Fed had essentially reduced the level of bank reserves to "adequate" levels. "We have now basically reached that level," Mr. Williams said of the theoretically adequate level of bank reserves, which prompted the Fed to resume bond purchases last week, or so-called "reserve management purchases". Mr. Williams noted that bank reserves had to be built up gradually as banks demanded them.
The Fed's decision to cut interest rates last week was the right thing to do, but the next move was difficult to judge, Mr. Williams said on Monday. Speaking to reporters at an event in Jersey City, New Jersey, Mr. Williams said: "I very much support our decision" to cut the Fed's base rate by 25 basis points. Looking ahead to the January 27-28 policy meeting, he said: "We will wait and collect all relevant data" and it is "too early to tell what to do with the next monetary policy decision".
New York Federal Reserve President William Williams said there is no investment boom outside of AI; productivity is expected to be above average in the next 5-10 years.
John Williams, president of the Federal Reserve Bank of New York, said monetary policy was well prepared for next year after the Fed cut interest rates last week amid rising employment risks and a slight reduction in inflation risks. "Monetary policy is very focused on balancing these risks. To that end, the FOMC has pushed an otherwise slightly restrictive monetary policy stance towards neutrality," the New York Fed president said. Thanks to the support of fiscal policy, "favorable gold...
Traders on Friday upped their bets that the Federal Reserve will cut interest rates for the third time in a row at its December meeting after Williams said the central bank could cut rates in the "near term", according to foreign media reports. Short-term interest rate futures are now pricing in a 57% chance of a rate cut in December, up from below 50% previously.
The Federal Reserve's Williams said that the 2% inflation target remains a very useful target.
Williams said fiscal policy may have pushed the neutral rate up by 25 to 50 basis points.
Mr. Williams, the president of the New York Fed, said the widening gap between rich and poor was putting the US economy at risk and making another rate cut in December a complex "balancing act". He called it "perfectly reasonable" to let the balance sheet continue until the end of November. Click to view
The Federal Reserve's Williams supports further interest rate cuts, arguing that the economy is not yet in recession. (Golden Ten)
