Market reversed on John Williams' 'near term' comment after hawkish Fed presidents - questioning if market reaction was correct
Steve
Roger Ferguson
Concerned that one speech suddenly changed market outlook, puts Fed in tough bind risking market disappointment
Economy above inflation target for 4.5-5 years, time to address inflation but Fed backing off - where do you stand?
Steve
Roger Ferguson
Strongly agrees inflation running at 2.9-3% doesn't round down to 2%, labor market not weak enough to need policy assistance
Private job data weakening but inflation data okay - are they siding with right risk?
Steve
Roger Ferguson
No - inflation risk and short-term credibility maintenance should not be ignored
Roger Ferguson
Without inflation data confirmation, harder to get genie back in bottle - err on caution
Would you delay Fed meeting for more data?
Steve
Roger Ferguson
No - don't want to be whipsawed by waiting for next data piece