Fed’s Williams: The disinflationary process will continue

• Labour market is now in balance, not providing upward pressure on inflation
• Wants to see inflation coming down to 2% and staying around that level amid solid labour market
• Don’t see any signs of a recession in the data
• It is pretty clear that monetary policy is restrictive today
• That is why it is “very appropriate” to cut rates in the past two meetings
• We’re well positioned for risks of inflation being higher than we expect for next year
• Expects it to be appropriate to cut rates further to more normal or neutral levels over time
• Full transcript

There’s nothing new in the comments here from Williams. As things stand, Fed funds futures are showing a ~53% probability of a rate cut next month. The upcoming non-farm payrolls report on 6 December is going to be crucial in finalising any biases here as policymakers are not offering all too much to work with for now.

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