Latest data getting us closer to a disinflationary trend that we’re looking forBut would like to see more data to gain further confidence inflation is moving sustainably to 2% goalLast week’s data reflects a broad decline in inflationThings are moving in the right directionEven if Fed begins to cut rates, policy will remain restrictive enough
Williams did somewhat rule out a July move as well, not that markets were expecting it anyway. He says that the Fed is “going to learn a lot between July and September” in terms of gaining more confidence towards cutting rates. The full transcript can be found here (may be gated).
This article was written by Justin Low at www.forexlive.com.
