New York Fed president John Williams is speaking to the Mortgage Bankers Association in New York City. Williams is a permanent voting member on the Federal Reserve Board:
- Recent economic data has been very good.
- Labor market is pretty much in balance
- First quarter growth was unusual trade issues
- Inflation has been coming down slowly and gradually.
- Keyword for economy is uncertainty.
- Monetary policy is in a good place.
- Fed rate policy is well-positioned. It is slightly restrictive.
- Some forward-looking indicators are signaling concern.
- Trade is particular point of uncertainty.
- Many firms and households are in a wait-and-see mode
- Fed has a ways to go in shrinking its balance sheet
- Balance sheet drawdown not affecting market prices.
- Dollar remains the world’s reserve currency.
- Global investors associate USS place to invest.
- We are not seeing major changes in investor interest in treasury bonds.
- Core fixed income markets have been functioning really well.
- Consumers are still in good shape.
- Seeing some signs and data of rising consumer caution
- The economy is likely to slow this year
Comments remain balanced as a Fed awaits the impact from tariffs mainly. When the keyword is “uncertainty”, they Fed is on hold until they get the next shove from the economy. He does warn that the economy is likely to slow, however.
Meanwhile the premarket for US stocks still remain negative:
- Dow industrial average -233.74 points
- S&P index -58.63 points
- NASDAQ index -290 point
Looking at the US debt market at 9 AM ET:
- 2-year yield 4.025%, +4.2 basis points.
- 5-year yield 4.147%, +8.5 basis points
- 10 year yield 4.562%, +2.1 basis points
- 30 year yield 5.032%, +13.5 basis points
This article was written by Greg Michalowski at www.forexlive.com.
