SF Fed moderate Williams said economic tailwinds
SF Fed moderate Williams said economic tailwinds are being provided by financial conditions and confidence, along with tax cuts and the global economic environment. Indeed, he expects unemployment to fall to 3.7% late this year and view low inflation as "good news," predicting it will return to 2% in the next 2-years. Williams said the Fed needs to get monetary policy back to normal and he doesn't view the Fed as ahead of or behind the curve, but well-positioned to keep the economy on a sustainable path. While his remarks appear fairly balanced, he's been bullish on the economic outlook of late, and would appear to support the 3-hike baseline scenario for 2018. Stocks, yields and the dollar meanwhile remain stuck in the headlights of the midnight government funding deadline.