Fed's Williams Says Productivity Boom's Effect on Rates Remains Unclear at Iceland Conference
Updated
Updated · Bloomberg · May 28
Fed's Williams Says Productivity Boom's Effect on Rates Remains Unclear at Iceland Conference
1 articles · Updated · Bloomberg · May 28
John Williams said a pickup in productivity growth does not point to a clear interest-rate path for the Federal Reserve, arguing the policy impact remains uncertain.
Speaking Thursday in Iceland, the New York Fed president said the answer 'depends' on what is driving the productivity shift and how long officials expect it to last.
His remarks suggest Fed policymakers would need to judge both the source and durability of any productivity boom before translating it into monetary-policy decisions.
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