New York Fed Pres. Williams is answering reporters questions after his speech at the New York economics club and says:
- Not ready to say how big first rate cut should be
- it’s clear labor market imbalances have eased.
- Jobs market more consistent with pre-pandemic environment.
- Clear rates should fall, but pace, destination last clear
The initial reaction was that Williams was not on board for a 50 basis point cut. He may have read a little bit about the reaction and thought he might clarify that 50 basis points is still a possibility. WSJ Timiraos said soon after his speech that Williams did not make any effort to lay the groundwork for a 50 basis point cut.
Fed’s Waller will be speaking at the top of the hour.