The Federal Reserve is not holding out hope that the United States economy will be what it has been in the last few years. Despite the official stance of the central bank is that the world’s largest economy is in a good place, the Fed is obviously concerned, otherwise it would not have cut interest rates twice.
New York Federal Reserve Bank President John Williams said as much, stating at an economics roundtable at the University of California that the economy will slow from its strong pace.
Citing trade uncertainty, geopolitical risks, and the yield curve inversion, Williams says that he and his colleagues take these matters “seriously.”
But Williams adds that the labor market is strong and the U.S. economy is in a good place when compared to the rest of the world.
He refused to give any hints if the Fed will cut rates again this year, though markets are betting that the central bank will impose a quarter-point reduction.
When asked if there is anything he is really worried about, Williams said he wants to know why there was such volatility in money markets in the middle of last month.
More Fed talk, but at least it showed that not everyone thinks the expansion can go on forever.
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