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17 May 2013
Fed's Williams reminds the market about QE end risk
FXstreet.com (Barcelona) - Despite the USD saw a retracement on weaker data, Fed’s dove Mr. Williams stepped in to remind the market that risks in the USD remain skewed to the upside after saying the Fed could reduce pace of asset purchases as early as this summer, and end them by year’s end, sounding confident that indications point towards continued labor market gains.
Some of the most relevant headlines from Mr. Williams were that the jobs market has improved considerably since QE3, as stated above, although was reserved by adding that further job creation is needed before he is convinced about ending QE. In terms of the jobless rate, he doesn’t expect the figures to fall below 6.5% until mid-2015
He said that fears of deflation are overdone, and that decrease in prices should be temporary, although expected to be capped below 2% in the next few years. He remains confident the Fed will succeed in exiting QE.
Some of the most relevant headlines from Mr. Williams were that the jobs market has improved considerably since QE3, as stated above, although was reserved by adding that further job creation is needed before he is convinced about ending QE. In terms of the jobless rate, he doesn’t expect the figures to fall below 6.5% until mid-2015
He said that fears of deflation are overdone, and that decrease in prices should be temporary, although expected to be capped below 2% in the next few years. He remains confident the Fed will succeed in exiting QE.