NY Fed Pres. Williams: Rate cut path depends on data

NY Fed Pres. Williams is speaking on FOXBusiness:

• Rate cut path depends on data.
• US economy is doing well, is in better balance.
• Fed decision to depend on economy.
• Things are moving in right direction for monetary policy.
• Expect interest rates to come down gradually as inflation eases.
• Politics will not influence fed right decision.
• We have a very strong economy and incomes are growing.
• Interest rates will come down over next few years.
• Recent inflation data has been encouraging.
• Expect inflation to continue to come down.
• 3% inflation is not the new norm. The Fed will get inflation down to 2%
• We still have a very strong labor market with some hiring slowing

The markets are reacting to the weaker retail sales both in the current month and the revisions. The Atlanta Fed Atlanta Fed GDPNow estimate will be released later today and expected to be revised back to the downside. The US consumer represents two thirds of the US economy.

• 2-year yield 4.712%, -4.9 basis points
• 10 year yield 4.242%, -3.7 basis points
• 30-year yield 4.383%, -2.7 basis points

in the US stock market in premarket trading:

• Dow Industrial Average average up 20 points
• S&P up four points
• NASDAQ index at 32.25 points

The stock levels are off their highs. Yesterday both the NASDAQ and S&P closed at record high levels.

This article was written by Greg Michalowski at www.forexlive.com.