Fed’s Williams: not worried by yield curve, won’t ignore its signal

Comments from Williams speaking with Bloomberg:

  • Not scared by inflation, doesn't see prices jumping.
  • Will have to phase out policy forward guidance.
  • Asked if he could justify hiking rates if it mean inverting the yield curve, said it would depend on the situation
  • "I don't see [inverted yield curve] as a situation that we would be running into in the next year or so, but I think the answer to that depends on the context"
  • I definitely wouldn't ignore signals we're getting from the markets
  • Tepid wage growth "Is a reason, a serious reason, that I'm not that worried about inflation, or wage inflation, or price inflation, being on the cusp of an outburst.

Previous comments from Williams:

  • Fed’s Williams: Three to four rate hikes in 2018 seems appropriate – | May 15, 12:20
  • Fed’s Williams: Significant trade war could have very negative economic effects Apr 22, 23:51
  • Fed's Williams – Faster growth & inflation could force Fed to hike rates rapidly | Jan 21, 18:32

About John C. Williams:

John C. Williams is the president of Federal Reserve Bank of San Francisco. In this role, he serves on the Federal Open Market Committee, bringing the Fed’s Twelfth District’s perspective to monetary policy discussions in Washington.