Fed’s Williams says rate cut could be warranted in the coming months

• Latest data getting us closer to a disinflationary trend that we’re looking for
• But would like to see more data to gain further confidence inflation is moving sustainably to 2% goal
• Last week’s data reflects a broad decline in inflation
• Things are moving in the right direction
• Even if Fed begins to cut rates, policy will remain restrictive enough

Williams did somewhat rule out a July move as well, not that markets were expecting it anyway. He says that the Fed is “going to learn a lot between July and September” in terms of gaining more confidence towards cutting rates. The full transcript can be found here (may be gated).

This article was written by Justin Low at www.forexlive.com.