NY Fed's Williams repeated the new mantra that the economy and policy are "in a good place,"
NY Fed's Williams repeated the new mantra that the economy and policy are "in a good place," in his speech, hence supporting the current holding pattern. He continues to expect moderate growth, a still strong labor market, and inflation moving up toward the 2% goal. He warned that "of course, things can change," and said if there were a "material change" to the outlook, the Fed would adjust policy. He added that trade uncertainties are impacting, and that businesses are "holding off on making investment decisions until the landscape is clearer," harking back to Chair Powell's comments. He said the Fed doesn't want to get caught up in the day-to-day ups and downs or high frequency changes in trade policy. He wants to think of where the economy will be in one or two years.