News Headline Summary

Fed's William says Fed will likely need to continue MBS and treasuries purchases well into second half of 2013

Says:

- Unemployment is well above Fed's mandate, inflation is below target, recovery faces serious menaces.
- Fed's policies are having the desired effects.
- Sees unemployment above 7% through at least end of 2014, inflation slightly below 2% for next few years.
- US GDP up 2% in 2012, 2.5% in 2013, 3.5% in 2014.
- No matter what, US government shifting toward austerity.
- Fed has substantial scope to provide stimulus.
- Monetary policy can't offset fiscal cliff impact.
- Does not see signs of diminishing returns for QE.

Update details:

- Williams is a FOMC voter and a known dove.

Reaction details:

- No reaction seen in DXY as these comments are in fitting with his dovish stance.

Print 01:49, 15 Nov 2012 - Asian News - Source: Newswires