NY Fed Pres. Williams
  • Eventually will need to cut rates
  • Fed rate hike not part of baseline view for the outlook
  • Fed policy making progress working out economic imbalances
  • Core services ex-housing inflation falling faster than expected
  • No need to change monetary policy in the very near term
  • Shelter inflation slower to come down than expected
  • Recent inflation setbacks are not a surprise to the Fed

These comments are more dovish than I would have expected.