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Fed Williams: markets remain highly reactive to new data

  • New York Fred President Williams gave economic outlook remarks at an event.
  • Fed Williams: Fed needs to think about balance sheet end game.
  • Fed Williams: Volatility has not affect the Fed funds rate.

New York Federal Reserve (Fed) President John Williams delivered overarching remarks about the Fed’s policy stance looking forward while attending an event in New York hosted by RM Friedland and Webster Bank.

As a member of the Federal Open Market Committee (FOMC) and Vice Chair of the Fed, NY Fed President Williams is a key policymaker within the US central bank.

Key highlights:

  • Financial markets remain highly reactive to new data.
  • Money market volatility has not affected the Fed funds rate.
  • Demand for reserves likely higher now relative to the past.
  • Fed needs to start considering the balance sheet end game in 2024.
  • Fed policy remains quite restrictive.
  • Fed is in a good place, time to think about what’s next for interest rates.
  • Eventually, the Fed will have to return to neutral policy levels.
  • Fed Williams: not caught up on every twist of the financial market shift.
  • Not surprised to see money market rate volatility.
     

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