Fed's Williams: Fed is not willing to accept very high inflation, or persistently high inflation
|The Federal Reserve's Williams has stated that the US economy has started to recover, but said it is 'nowhere near where we want to be''.
Williams also explained that the Fed is not targeting inflation expectations, which can't be measured exactly.
Key comments
The economic outlook is ‘highly uncertain’.
Fiscal policy actions can be very helpful in the short-run.
Some parts of the economy have not recovered nearly as much; target fiscal support would be helpful.
Will continue to assess what is best use of tools to achieve goals
Market implications
There has been no reaction to the comments,
Markets are fixated on Congressional stimulus developments.
The US dollar is stationed outside of a channel and testing bullish commitments at a key support structure:
DXY stationary on FOMC minutes, needs to hold above 93.40
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