Fed's Williams say high market prices justified by economic growth and low rates

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As Democrats push a $1.9 trillion relief package, NY Fed Pres. Williams says he’s not concerned about fiscal support being “excessive” right now. “Really what I want to see is an economy that gets back to full strength as soon as possible.”

Fed policy of low rates and continued asset purchases often is cited as a driving factor in prices for risky assets. Earlier in the day, the Fed's semiannual monetary policy report to Congress noted that "asset valuation pressures have returned to or exceeded pre-pandemic levels in most markets, including in equity, corporate bond and residential real estate markets."

While Williams did not commit to a specific future course for the central bank, he indicated that the environment likely will remain accommodative. "I think the fundamental drivers are optimism among investors that the U.S. economy and the global economy is going to have a stronger recovery and expansion, an expectation of low rates well into the future," he said. "Those combined will give you high asset valuations."

Williams also addressed the high levels of monetary and fiscal stimulus that have been provided during the Covid-19 pandemic. He said he is not concerned that policymakers are doing too much, despite an economy that appears to be defying earlier projections for a slow start to 2021.that aggressive stimulus is still needed.

"Right now, the economy has quite a ways to go to get back to maximum employment and we have a ways to go to get back to our 2% inflation target," he said. "So I'm not really concerned about fiscal support right now being excessive or anything like that. Really, what I want to see is an economy that gets back to full strength as soon as possible."

 

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Open the economy.

If businesses does not survived, doesn't matter how much you give to individual will not help surviving economy AMD lenders to survive, should be wisely support small businesses to keep balanced by surviving, human worries for Food and Living healthy is priority

send me a check, rich guy

yes, the economy is weak. The economy needs to get stronger.....can Goldman raise GDP estimates even more? Is 10% growth ok Mr Williamns?

I want to see money spent wisely. Create some work incentives to help small businesses and our economy.

They don’t care about Americans. They own two branches since the election n still can’t pass a bill on money they just print more of.

and then people think lasereyes BTC people are the crazy ones, 😁 keep printing, we love you

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