The Federal Reserve is open to reassessing its views and listening to market signals that the U.S. economy could fall short of expectations, but for now further rate hikes appear appropriate and it is not yet ready to reconsider its portfolio
The Fed is “ready to re-assess and reevaluate our views and…policy stance,” New York Fed President John Williams said on CNBC. “We did not make a decision to change the balance sheet normalization right now, but…we will go into the new year with eyes wide open, willing to read the data and listen to what we are hearing, re-assess our economic outlook, and take the right policy decisions.”
In response to the comments stocks added to gains, with the S&P rising to a session high, a climb of 1.5 percent. The Fed on Wednesday raised rates a notch and projected a median of two more rises in 2019.
