New York Fed President John Williams commented today and said:
- The latest data bring us closer to the deflationary trend we are looking for.
- But I would like to see more data to gain more confidence that inflation is moving sustainably towards the 2% target.
- Last week's data reflect a widespread decline in inflation.
- Things are going in the right direction.
- Even if the Fed starts lowering interest rates, the policy will still be sufficiently restrained.
Williams somewhat ruled out a move in July as well, which the markets were not expecting anyway, and says that the Fed will learn a lot between July and September in terms of gaining more confidence towards cutting interest rates based on the data until next September. It is worth mentioning that today we still have more statements from some Fed members, namely Parkin and Waller.
