New York Fed President John Williams
The economy is clearly facing several challenges, primarily from overseas, but the three rate cuts since July should help sustain growth, said New York Fed President John Williams on Tuesday.
“From the domestic point of view, things are strong and continue to be strong, but we’re dealing with various global factors we’re trying to navigate,” Williams said, in a talk at a Sifma conference in Washington.
The U.S. economy is facing headwinds from slower global growth, uncertainty from trade and muted inflation pressures, Williams said.
As a result of these global factors, “growth is starting to slow in the U.S.,” Williams said.
The Fed’s three rate cuts since July were designed with these risks in mind and mean that policy is “well-positioned for a future that is uncertain,” Williams said.
Fed Chairman Jerome Powell has signaled that Fed policy is on hold at least through the end of this year.
Williams said policy was “not locked in” and would respond to the data going forward.
Stocks DJIA, -0.16% were expected to open higher on Tuesday despite worries about U.S.-China trade relations.