Salient to Investors:

FRB San Francisco President John Williams said:

  • The Fed should continue the MBS purchases into next year and continue the Treasury purchases because we have not seen a sustained, significant improvement in the labor market, such as payrolls growth more than 200,000 jobs a month or a measurable decline in the unemployment rate, and coherence across lots of indicators.
  • Expect growth of 2.5 percent in 2013 and 3.5 percent in 2014 without fueling inflation.
  • Concern that large-scale asset purchases might ignite a bout of inflation are unwarranted because price increases are being held in check by elevated unemployment and an economy operating at less than full speed.

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