New York Fed President John Williams said in a speech that “the economy is in a good place, but not without risk and uncertainty”. “Persistently low inflation” is a key area of his attention. In particular, he noted the “broader context is important”, with “ongoing disinflationary pressures from abroad”.
Meanwhile, beyond the “good” headline GDP figure, there are “more mixed signals coming from different sectors”. “Robust consumer spending is balanced by signs of slowing business investment. We’ve also seen a decline in exports and weakening manufacturing data, reflecting slowing global growth and uncertainty related to trade and geopolitical risks.”
Williams said he is carefully monitoring this “nuance picture” and “remain vigilant to act as appropriate”. And, Fed will maintain a “data-dependent approach that takes into account the risks and uncertainty that are weighing on the economy.”
