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.

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.