Fed's Williams: New 'patient' stance does not mean not raising rates or that policy is set for all time

In an interview with Reuters on Tuesday, New York Fed President John Williams said that the Fed's new 'patient' stance did not necessarily mean that the bank wouldn't raise rates or that the policy was set for all time.

Key quotes (via Reuters)

  • Would need different outlook for inflation or growth to back further rate hikes.
  • Roughly estimates reserves on balance sheet to fall to $1 trillion 'or somewhat more,' versus about $1.6 trillion currently.
  • Monetary policy is where it should be with rates around neutral.
  • Currently mixed data 'a strong argument for taking some time' on rates.
  • Expects to be drawing down balance sheet for some time.
  • U.S. Economy is in a 'very good place'.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD falls sharply after terrible German PMIs

EUR/USD is trading below 1.1350, falling sharply. German Manufacturing PMI plunged to 44.7 points, deep in contraction territory. Earlier, French PMIs all came out below 50. Euro-zone prospects are bleaker. 


GBP/USD falls below 1.3100 as Brexit extension fails to inspire

GBP/USD trades below 1.3100, resuming its falls. European leaders postponed Brexit until at least April 12th, an additional two weeks. The ball passes to Parliament once again and many fear PM May will opt for a no-deal Brexit.


USD/JPY remains on the defensive below 111.00 mark

The USD/JPY pair failed to capitalize on the overnight attempted rebound from five-week lows and traded with a mild negative bias through the early European session on Friday.


EMU Purchasing Managers' Indexes: Trend intact

The manufacturing PMI is projected to rise to 49.5in March from 49.3. The service sector PMI is predicted to drop to 52.7 from 52.8 in February. The composite index will gain 52.0 from 51.9.


Read full report

Gold climbs to session tops, further beyond $1310 level

Gold quickly reversed an Asian session dip to $1307 area and is currently placed at session tops, recovering all of the previous session's modest pull-back from three-week tops. 

Gold News