Please see here for more information on The Weight of the Evidence (The WOTE) cross-asset market research platform. If you do not like The WOTE content, please unsubscribe. If you believe someone else might like the content, please feel free to pass along (it’s free, after all). Thank you.
Discussion
FRB New York President John Williams made news today by putting the possibility of more rate hikes on the table, but the clip was taken from a longer interview not readily available to the public (perhaps by design?). In the longer version of the interview he very decisively raised the bar for rate cuts to:
“Eventually, once inflation moves all the way back to 2%.”
That’s a significantly higher bar than Powell’s oft-stated guidance of rate cuts coming “well before” inflation is back to 2%.
(See minute 25 of the video below.)