New York Fed President John Williams said yesterday that the economy is in a “pretty good place” and consumption has been “very resilient”. While consumer spending is a lagging indicator, data on asset prices, employment growth and wage growth support positive outlook.
Fed policymakers factored in some uncertainties during the decisions for rate cuts back in July and September. The factors include global slowdown, low inflation and trade tensions. However, Williams added, “I don’t want to have this narrative that we still have the same conditions out there so does it mean we need to take further and further action.” And, “what we need to do is weigh or consider how those factors are influencing the outlook.”
