Williams sure is talking a lot lately
- In the context of strong labor market, wage growth and stable inflation he sees continued rate increases
- Expects new normal for the Fed’s balance sheet to be around $3 trillion
- Much larger federal debt and deficits will also push the yield curve steeper
Williams is the second Fed member within an hour to talk about higher deficits and debt steepening the yield curve. Should someone tell them that Japan has enormous deficits and debt?