Fed's Williams: Thinks economy is in a very, very good place

New York Federal Reserve's John Williams is crossing the wires and has said he thinks the economy is a very very good place.

Key comments

  • LIBOR transition is the biggest challenge facing financials. 
  •  NY Sed's Williams says thinks the economy is in a 'very, very good place'.
  • Williams says that over time the fed's balance sheet will have to grow modestly.
  • Williams says expects inflation to pick back up close to 2 percent this year.
  • Williams says risks to the outlook include global growth, china and coronavirus, low inflation.

FX implications 

There is not enough meat on the bone for there to be a market reaction. Most economists have already forecasted that the Fed will now pause in 2020 after having cut rates three times in 2019. The Federal Reserve said in its last meeting that interest rates would remain between the target range of 1.5% and 1.75%. Fed chair Jerome Powell said developments in the global economy since the last Fed meeting — namely threats posed by the coronavirus outbreak — have not changed the central bank's wait-and-see approach.  "It’s very uncertain ... how far [the coronavirus] will spread and what the macroeconomic effects will be," Powell told reporters at the press conference last month.

The US dollar is the cleanest of all dirty shirts in the laundry basket as US data continues to support a growth outlook for the US economy, robust yields and prices. The DXY rallied onto the 99 handle this week and is holding firm. 


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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD falls below 1.1850 as US consumer sentiment beats

EUR/USD is trading under1.1850, off the previous levels as US consumer sentiment beat estimates with 78.9 points. The Fed refrained from adding more stimulus, supporting the dollar earlier in the week. Investors are eyeing fiscal stimulus talks.


GBP/USD falls as the EU reportedly objects Johnson's bill

GBP/USD is trading around 1.2950, off the highs. According to reports, the EU remains opposed to UK PM Johnson's controversial bill, which violates the Brexit accord. 


XAU/USD struggles to move back above 100-hour SMA

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.

Gold News

Ethereum hits Bitcoin's bid to lead the market

Bitcoin risks dominance after the strong rise of Ethereum. Technical indicators show some significant discrepancies keeping the stress on the board. Sentiment levels are improving and bordering on optimism.

Read more

After yesterday's JMMC meeting WTI settles near $40 per barrel

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. 

Oil News