Fed’s Williams: Expects that the economy will allow the Fed to cut further

  • Expecs inflation to wane to 2.25% this year and close to 2% next year
  • Sees GDP this year between 2.25% and 2.50%
  • Recent Fed rate cut should leave the economy in a strong place
  • Pace and size of future cuts to be determined by economic data
  • Job market unlikely to an inflation driver going forward
  • Sees unemployment at 4.25% and around that in 2025

I don’t see any big market drivers here but those are some low unemployment forecasts .For Williams, that suggests he would be prepared to do more-aggressive easing if unemployment rises above 4.5% or appears to be headed that way.

This article was written by Adam Button at www.forexlive.com. Source