Fed’s Williams flags cautious optimism amid lingering uncertainty

New York Fed President John Williams struck a balanced tone in his latest remarks, highlighting strength in recent US data while acknowledging steady uncertainty around trade.

Key Quotes

• Recent economic data has been very good.
• The labour market is pretty much in balance.
• First quarter growth was unusual on trade issues.
• Inflation has been coming down slowly and gradually.
• Key word for economy is uncertainty.
• Monetary policy is in a good place.
• Fed rate policy is well positioned, is slightly restrictive.
• Some forward looking indicators are signaling concern.
• Trade is a particular point of uncertainty.
• Many firms, households in wait-and-see mode.
• Fed has a ways to go in shrinking its balance sheet.
• Fed balance sheet drawdown not affecting market prices.
• Dollar remains the world’s reserve currency.
• Global invetors still see US as a place to invest.
• We are not seeing major changes in investor interest in Treasury bonds.
• Consumers are still in good shape.