PRIMER - Today’s Fedspeak includes: Williams, Musalem, Bowman, Daly

09:30GMT/04:30EST: Fed’s Williams (voter) will participate in a fireside chat at an ECB event alongside the ECB chief economist Lane. Speaking ahead of the October FOMC meeting (where the Committee maintained rates at between 3.75-4.00%), Williams said one further hike this year might be appropriate, but saw no current reason for another in 2027. He expects inflation will slow markedly and approach the 2% target next year as the effects of tariffs and higher energy prices fade, and argued that underlying measures are already easing, although AI-related investment was adding to price pressures. He argued that the economy was not overheating and that the labour market was not contributing to inflation. Williams sees the real neutral rate at about 1% or slightly higher, and said rates were not far from neutral based on his outlook. He stressed that uncertainty was high, and that policy would depend on incoming data. NOTE: ECB chief economist Lane’s term will conclude in May 2027. 14:10GMT/09:10EST: Fed’s Musalem (2028 voter) will participate in a moderated discussion. Speaking last week, Musalem said that further monetary tightening would be necessary soon to return inflation to target, arguing that incremental moves made earlier are usually less disruptive than larger, abrupt action later. He still sees current rates as accommodative despite September’s increase, and sees inflation risks tilted towards persistently above-target outcomes. He noted that financial conditions had tightened recently, partly owing to the Fed’s action, although less sharply than after other major events, and that inflation expectations had so far remained anchored. 17:15GMT/12:15EST: Fed’s Bowman (voter) will give a radio interview on supervision and regulation. Speaking before the October FOMC, Bowman said the Fed had time to assess how financial markets and the economy evolved following its September rate rise before deciding whether further action was warranted, and saw no urgency to lift rates at the October confab. Bowman also said the Fed considered issues around the financing of data centre construction, stressing that capital needed to be available to support future economic growth through its approach to banking supervision and regulation. 18:00GMT/13:00EST: Fed’s Daly (2027 voter) will give an interview to CNBC. Speaking before the October policy meeting, Daly said further rate rises were more likely than not to be needed to curb excessive inflation, but the timing remained under deliberation, and she saw no urgency to act in October. She said September inflation metrics suggested price pressures remained elevated, and had increased, although underlying inflation, while sticky, had not risen sharply. Daly argued that reacting to risks hastily would be imprudent when time allowed for a considered decision, and that continued labour market stability gives the Fed room to focus on price stability.