Fed's Williams: Outlook is uncertain, Fed must be data-dependent


Federal Reserve (Fed) Bank of New York President John Williams said on Thursday that the Fed must be data-dependent as the outlook remains uncertain, per Reuters.

Key takeaways

"Fed forecasts rate cuts starting this year."

"Outlook is uncertain, Fed must be data dependent."

"Inflation moving toward 2%, expecting further bumps."

"Fed has made considerable progress on lowering inflation."

"Risks between inflation, unemployment moving into better balance."

"Expecting unemployment rate to rise to 4% this year."

"Inflation to stand at 2.25%-2.5% this year."

"Inflation to settle back to 2% next year."

"Focused on getting inflation back to 2%."

"Expecting US GDP to hit 2% this year."

"Job market remains strong."

"Housing is very strong but no signs of bubble."

"Slowing balance sheet run off does not mean ending process."

"Evidence suggests reserve levels remain abundant."

"Commercial real estate area of concern, will take time to resolve."

Market reaction

These comments don't seem to be having a significant impact on the US Dollar's valuation. At the time of press, the US Dollar Index was virtually unchanged on the day at 105.15.

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