More Fed Williams: Risk remains more on the inflation side
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More from Fed's Williams: key to look at underlying inflation factors, not just a specific measure. Government technical changes could better reconcile PCE inflation and CPI differences. Fed policy needs to remain data dependent. We will have to see how monetary policy reacts to
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4 itemsFed Williams sitting on the fence on inflation, but says persistent above target
Lead — The desk interprets John Williams' recent remarks as a signal of cautious optimism regarding inflation, with longer-term expectations remaining stable despite near-term pressures. Per the full note [source], Williams emphasized that the labour market is not currently a source of inflationary pressure, which supports the Fed's current stance of watchful patience. This aligns with our consensus target of 1.075 for the USD/EUR pair, as traders await clearer signals from the Fed. The upcoming economic data releases may provide further clarity on inflation trends.