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Standing Firm: NY Fed President Sees no Need for Rate Hike as Goldilocks Economy Rolls On

May 22, 2019

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  • The US Federal Reserve sees no reason to cut or hike interest rates at this current time, according to recent comments made by one of the US central bank’s top policymakers.  
     
  • While speaking to reporters at a press briefing in New York on Wednesday, New York Fed President John Williams explained, “I don’t see any strong argument today, based on what we have seen in the data or other information, to move interest rates one way or the other.”  
     
  • Of late, market consensus has shown a 70%+ chance that the US Fed will cut rates at least once by the end of 2019 and a 22% chance that the US Fed will cut rates at least twice by the end of the year -- we dive deep into these readings here
     
  • According to Bloomberg, the remarks made by Williams are very similar to those of US Fed Chairman Jerome Powell, who has lately pushed back against pressure from US President Donald Trump to slash interest rates.  
     
  • Williams is, however, paying close attention to US economic readings and data as he assesses whether recent inflation weakness in temporary or longer-term. “I’ll be watching developments over the next months and quarters to see how the economy is doing, how risks to the outlook evolve, and importantly how inflation trends move,” Williams told reporters.
     
  • Williams also believes that there is little upward pressure on US inflation, although he still expects inflation in 2019 to come near the Fed’s 2% target.
     
  • The US Fed will release minutes from its most recent May 1st meeting at 2 PM on Wednesday -- look out for a Quantamize market insight that will break down everything you need to know from the minutes!

 

 

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