---
title: "The three key figures of the Federal Reserve sing a different tune from market expectations: they do not believe that the recent US inflation data marks a turning point"
type: "News"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/news/202004020.md"
description: "New York Fed President Williams stated that the recent US inflation data is not a turning point, but it may affect its forecasts. He believes that the current monetary policy is restrictive, and if inflation continues to fall, the Fed may start cutting interest rates this year. In addition, Williams pointed out that Fed officials are closely monitoring the situation in the Middle East, but do not consider it a major factor affecting the US economic outlook. Data released on Monday showed a decrease in the size of overnight reverse repurchase agreements by the Fed, seen as a signal of an upcoming slowdown in balance sheet reduction"
datetime: "2024-04-15T21:41:31.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/202004020.md)
  - [en](https://longbridge.com/en/news/202004020.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/202004020.md)
---

> 支持的语言: [English](https://longbridge.com/en/news/202004020.md) | [繁體中文](https://longbridge.com/zh-HK/news/202004020.md)


# The three key figures of the Federal Reserve sing a different tune from market expectations: they do not believe that the recent US inflation data marks a turning point

William Williams, the President of the Federal Reserve Bank of New York, who is known as one of the "three heads of the Federal Reserve" with permanent voting rights on the FOMC, stated on Monday that he does not believe the recent U.S. inflation data marks a turning point, although he acknowledges that these data will impact his views and forecasts, with the latest CPI being important information affecting forecasts.

Similar to his views last week, Williams reiterated that the current monetary policy is in a good state and is restrictive. **If inflation continues to gradually decline, the Federal Reserve may start cutting interest rates this year.** "We need to start a process at some point to bring interest rates back to a more normal level, and I personally believe that this process may start this year."

Regarding the reduction of the balance sheet, Williams stated that Federal Reserve officials are seeking a cautious approach to slowing down the balance sheet reduction. This will allow the Federal Reserve to conduct evaluations and analysis. The current reserve size is basically sufficient.

Data on Monday showed that the scale of the Federal Reserve's overnight reverse repurchase agreements (RRP) plummeted to $327.066 billion, the first time the RRP has fallen below the $400 billion mark since May 2021. With the continued decrease in RRP, this is seen as a sign that the Federal Reserve is slowing down its balance sheet reduction.

Williams pointed out that Federal Reserve policy has always been an important driver of rebalancing.

Williams believes that the U.S. economy will continue to grow at a steady pace, with consumer spending being driven by strong fundamentals. He also mentioned that Federal Reserve officials are closely monitoring the situation in the Middle East, but he does not believe it is a major factor affecting the outlook for the U.S. economy.

Recently, multiple data released by the United States have shown a resurgence of inflation, including last week's CPI and PPI inflation data, as well as the stronger-than-expected retail data for March released this Monday. Following the release of this data, U.S. bonds plummeted, and traders no longer believe that there is a 100% chance of an interest rate cut before November this year

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- [Williams (WMB.US)](https://longbridge.com/zh-CN/quote/WMB.US.md)
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