New York Federal Reserve: Speech today by President Williams was not about potential policy actions

Just when the markets are heavily expecting a 50 basis points rate cut from the US Federal Reserve in its July 31 meeting, mainly based on the New York Fed President John Williams latest comments, the New York Federal Reserve came out with statements defending Mr. Williams’ dovish appearance.

Key quotes

• Speech today by President Williams was academic and based on research.
• Was not about potential policy actions at the upcoming FOMC meeting.

FX Implications

The news triggered a pullback of the US Dollar (USD) which declined heavily on the Fed policymakers’ earlier comments. Investors may now await fresh clues for further direction