New York Fed President John C. Williams has been speaking on Monday at the 2022 U.S. Hispanic Chamber of Commerce National Conference.

He said in more recent trade that the Fed still has a way to go, cites 4.6% median `23 dot.

In earlier comments, Williams pointed to three layers of inflation, comparing it to an onion. "The outer layer consist of prices of globally traded commodities such as lumber, steel, grains, and oil." 

Prices soared as demand rebounded from the pandemic. Russia's war in Ukraine also added to the pressure, he said.

Market update

Meanwhile, the US dollar was softer by 0.4% and stocks on Wall Street ended sharply higher on Monday. The Dow finished +2.7%, the S&P 500 closed +2.6% and the Nasdaq Composite ended +2.3%. 

The 10-year Treasury yield fell 14 basis points to 3.66% and at one point dropped by 20 basis points. The 2-year yield declined 9 basis points to 4.12%.

ISM manufacturing index data, which provides a gauge for manufacturing activity in the US, came in lower than expected. The ISM reported a figure of 50.9 for September, lower than the forecasted 52.2.