Federal Reserve's policy rate is in "a good place' right now, NY Fed's Williams says

Rob Kim

"Inflation is moving in the right direction, though it's still too high," John Williams, president of the Federal Reserve Bank of New York said in a moderated discussion on Thursday. "We're seeing movement in the right direction to bring supply and demand more into balance."

"I think right now we've gotten monetary policy into a good place," but "we'll have to keep watching the data" and assess whether policy is restrictive enough, he added.

It's important to note that "we still get more data between now and then," he said.

4:20 PM ET: Event concludes.

4:18 PM ET: It's up to elected officials to get fiscal policy on a sustainable path, Williams said.

4:17 PM ET: Fed officials don't coordinate with officials at other central banks, but do have a good dialogue with counterparts as they try assess global economic dynamics, he said.

4:03 PM ET: Core services prices are a "good place to look" to gauge progress in addressing inflation, Williams said.

4:00 PM ET: He continued to emphasize that it's important to bring inflation down to the Fed's 2% goal. GDP growth has stayed "remarkably strong," and talk about a recession have diminished. Still, Williams expects the unemployment rate to rise above 4%, but not approach rates seen in previous recessions.

3:55 PM ET: Right now, there are still huge effects from the pandemic on wage growth. Some good signs are that labor market is cooling somewhat and wage growth has slowed, he said.

3:53 PM ET: There are reasons to think that consumer spending will moderate. Williams said he expects the effects of the Fed's previous rate hikes becoming stronger over time.

More on U.S. Monetary Policy

• No New Move Necessary: Federal Reserve
• Fed will need to keep rates 'restrictive' for 'some time', Boston Fed's Collins says
• Fed can proceed carefully with next rate move after recent data - Waller
• Fed's Mester says labor market still strong, inflation too high
• Federal Reserve is prepared to hike rates more if needed: Powell at Jackson Hole

Comments

[HereToWin]

Don't look for Retailers to lower Prices.
They may have Sales but 30% off on Outerwear priced at $100 is still $70 Bucks.

[JustNumbersOnaScreen]

Student loans come due in 24 days. Could this be the reason to think consumer spending will moderate? I am expecting a poor holiday season for everyone!

[WYCO Researcher]

He is WRONG! Fed funds target needs to be at least 75 to 100 basis points higher to get inflation at or below 2% within the next 15 months.

[HereToWin]

@WYCO Researcher We Agree.

[William Apel]

He said it perfectly....signs the labor market is cooling and wage growth is slowing....it was never about inflation, it was about taking job leverage away from normal people and giving it back to the big corporations.

[James_B]

These guys just need to stop speaking. Economy isn't in a good spot. There's been a reduction in the growth rate of inflation (highest in 40 years) and still 50% higher than where the Fed wants it. All time debt levels across the board. Job market looks like the last domino to fall, all these backdated revisions are going to add up... Hey, oil is over $85/barrel, that happened quickly. Hostile nations want to keep it higher now that China's tanks are full... what else? Oh right, home mortgage applications now the lowest in 30 years.

But you go on and wait for that data to keep coming out.

[SuperPac]

@James_B He is a central banker. Not the Prez of the land. As a central banker he has done well in supporting Powell's tough stance on rates against the political pressure coming from Yellin/Treasury.

[Phil Dumfee]

Not too hot. Not too cold. Don't muck it up Joe.