The New York Fed president John Williams, who is a voting member of the FOMC was speaking at a virtual speech to the Economics Club of New York continued with a hawkish tilt on inflation saying, “There is still more work to do,” he is less the hawk with jobs. On inflation he expects it to cool to 5.0-5.5% by year end and 3.0-3.5% by late 2023, which is comparable to the range of 2.6-3.5% in the Fed’s SEP. Williams ahead of Fridays … Continue reading “NY Fed Williams Expects US Jobless Rate to Rise from 3.7% to 4.5-5.0%”
Fed Must be Resolute and We Cannot Fall Short says NY Fed Williams
The New York Fed president John Williams, who is a voting member was speaking at a campus of the University of Puerto Rico continued with his hawkish tilt. He also focused on familiar themes saying and risks to the inflation outlook are particularly acute. His prepared speech followed a strong US jobs report for June and the release of the last FOMC minutes. The Fed holds around US$9 trillion of Treasury bonds and mortgage-backed securities. Federal Reserve Bank of New York President … Continue reading “Fed Must be Resolute and We Cannot Fall Short says NY Fed Williams”
Uncertainty About the Economic Outlook Remains Extraordinarily High says NY Fed Williams
The New York Fed president John Williams, who is a voting member was speaking to a symposium at Princeton University continued with his hawkish tilt. He said the process of reducing the size of the Federal Reserve’s balance sheet could start at the next meeting, May 3 & 4. He also focused on familiar themes saying and risks to the inflation outlook are particularly acute. The Fed holds around US$9 trillion of Treasury bonds and mortgage-backed securities. “These actions should enable us … Continue reading “Uncertainty About the Economic Outlook Remains Extraordinarily High says NY Fed Williams”
What You Need Know About Quantitative Tightening QT Bifurcations Explained
Most of us are familiar with QE but what is QT? When the Fed reduces its balance sheet it is known as quantitative tightening, the flipside of quantitative easing. The US Federal Reserve at its December FOMC put the world on notice that tighter financial conditions are ahead. What does it mean? The possible Bifurcations would make Mandelbrot wince. Firstly, the bond market has a lot more work as the task of financing governments gets more difficult without central banks … Continue reading “What You Need Know About Quantitative Tightening QT Bifurcations Explained”