6 novembro 2019
New York Fed President Williams: Fed would address next recession by cutting interest rates to zero, and using communication and asset purchases
- Data shows labor market is strong
- Data dependence means reassessing full employment
- Labor market is really strong with low unemployment
- Fed officials have a lower view of what sustainable level of unemployment is based on low-inflation
- Job growth is still solid despite slowdown in exports, business investment in the global economy
- Slowing global growth and muted inflation pressures argue for a more accommodative policy
- Monetary policy is moderately accommodative right now
- Three cuts we did were very effective at managing risks to the U.S. economy
- Fed will be data dependent and preemptive going forward
- Fed's change from raising rates cutting rates was about assessing the risks to the outlook
- Monetary policy does have some limitations so it would be nice to have fiscal policy aligned when addressing downturns
- Monetary policy going forward should have a commitment to asymmetric 2% inflation goal
- Does think that 2% inflation is achievable
- Monetary policy should be somewhat accommodative to support growth of a more inclusive labor market