New York Federal Reserve (Fed) Bank John Willams said during the European trading session on Thursday that downside employment risks have eased and the economy is showing a strong demand from Artificial Intelligence (AI). Williams warn that the major challenge for the central bank is coming from high inflation.
Remarks
We have seen remarkable resilience in US economy.
Downside risks to achieving maximum employment have receded.
Big challenge is on inflation.
We are seeing pretty strong demand from AI.
We need to get inflation back to target in timely manner.
Reasonable to see another rate hike by end of year.
Time for explicit, very direct forward guidance is over.
Market reaction
There is a notable rise in the US Dollar (USD) after hawkish remarks from Fed’s Williams. The US Dollar Index (DXY) rises almost 0.1% to near 101.10 from 101.00.
