Williams on Fed transparency
The problem is that the only thing predictable about the Fed is that they won't follow their own forecasts.
That said, they seem to be doing everything they can to set up a December rate hike.
An ongoing debate at the Fed, he said, is the balance sheet. There has been a lot of discussion about the 'right plan' for the balance sheet. As it's trimmed he said the yield curve may look difference.
That touches on something Rosengren said. Combined, it confirms the Fed would like to work on some kind of steepener.
On wage growth, Williams said there is 'no question' that it's picking up. But at the same time, he said the improvement in labor force participation buys the Fed time.
