Fed’s Williams: We are watching inflation expectations very closely

• Medium and longer-run inflation expectations have stayed remarkably stable
• Inflation is at the forefront of all our thinking.
• Financial markets have adjusted expectations with minimal disruption
• If it’s appropriate to hike by 50 bps at a meeting, he will do that
• Says he will watch data and analyze it
• We need to make the right decisiosn based on what we are seeing in the economy

There’s nothing notable here so far but it’s a reminder to watch inflation closely.