So what is the purpose of regional Fed Presidents having membership on the FOMC and being involved monetary policy formation, again?
I can’t quite seem to figure out where the voice of these people who are elected like Jamie Dimon was elected fit into national economic policy formation. Post FF rate hike by 25 basis points, U3 has ticked up slightly, new claims for UI are at a two-year high, and according to Lakshman Achuthan’s slide deck, we are experiencing a general cyclical slowdown, while Mr. Williams sees 2-3 FF rate increases this year in order to mitigate a risk that rate increases will be steeper next year. With TIPS spreads virtually unchanged from last month, after having sunk to new lows in 1Q, it is of some interest to figure out which planet Williams is from because it certainly isn’t Earth.
PS: What’s he smokin’? If we tighten MP when oil prices plunge, it is food for thought then what we do when they rise.