Fed's Williams (moderate, FOMC non-voter in 2016): China is undergoing a significant pivot, not terribly worried about China given good consumer spending data - CNBC interview
- Chinese stock market has a fairly small impact on overseas stock markets, given its small size.
- Chinese slowdown is not a systemic risk to the US economy
- US economy is in very good shape, relative to other countries, that should continue in 2016
- Europe and Asia are struggling economically more than the US, but policy responses will help them get back on track
- Over the medium term, Fed needs to focus on its dual mandate
- Net exports a big drag on US economy, will still need significant accomodation over next few years
- Three to five Fed rate hikes in 2016 would make sense
- Personally, I see unemployment dropping below 5% in 2016, inflation moving back toward 2%
- Strong USD has held down inflation