Fed/Williams: US monetary policy in good place

“I think we’ve got monetary policy in a very good place in terms of having a restrictive policy stance,” New York Fed President John Williams said. He said U.S. monetary policy is in a “good place” but that officials will need to review the data to decide how to proceed. “I think we’ve got monetary policy in a very good place in terms of having a restrictive policy stance,” Williams told Bloomberg TV. Williams said the policy had the desired effects of bringing demand and supply more into balance and easing inflation, adding that the Fed “has done a lot” by raising interest rates significantly. Williams said officials need to adjust policy as needed to make sure they’re bringing inflation sustainably down to its 2% target. “We’ll have to continue to analyze all of this carefully and monitor the data and ask ourselves, is this level restrictive enough?” Williams said. “Is it possible to make steady progress in reducing imbalances in the labor market and getting inflation back down?” Meanwhile, Dallas Fed President Lorie Logan said it would be appropriate not to raise interest rates at the next Fed meeting, but that further tightening would be necessary to reach the 2% target. Chicago Fed President Austan Goolsbee said the main issue was shifting to “how long should rates stay high?”