New York Fed President John Williams noted that while the U.S. economy is currently performing well, rising uncertainty and shifting government policies warrant a patient approach on monetary policy.
He said monetary policy remains “slightly restrictive” and is “well positioned” to handle future developments.
“It’s going to take some time to get a clear view,” Williams said, emphasizing the Fed’s ability to “take our time” before making further moves.
Addressing concerns about the stability of Dollar assets, Williams acknowledged there are “rumors or concerns” stemming from recent fiscal and policy shifts. However, he downplayed immediate risks, noting that there have been no “major changes” in foreign inflows into the Treasury market.
Despite recent volatility in yields, he described bond markets as remaining “mostly range-bound.”.
