The WSJ’s Hilsenrath writes that SF Fed Williams wasn’t too worried about last week’s soft NFP report:
We just have to get away from overreacting to one piece of data
And is sticking to his earlier judgement that tapering might be appropriate in H2’13.
Mr. Williams stuck to his stance in the interview. “We’ve got a very strong accommodative policy in place, and I am very happy with that,” Mr. Williams said in the interview. Still Mr. Williams said he expected to see enough improvement in the economy in the months ahead to warrant winding the programs down. The programs, he said, must eventually “come to an end,” and he expects the economy to get on a better trajectory.
Of course, his forecast is conditional on how the economy actually performs. “We just have to keep watching all of the economic indicators,” he said.