John Williams, President of the Federal Reserve Bank of New York, recently addressed the challenges facing the Federal Reserve (Fed) in economic forecasting. Speaking at the Biennial Macroeconometric Caribbean Conference in Nassau, Williams emphasized the increasing difficulties posed by ongoing trade war threats from the Trump administration. Williams recognized these challenges to be sure, but maintains the Fed’s projected rate path remains appropriate. Yet he underscored that there’s not a big need to speed up any sort of monetary policy shift.
Unforeseen outside developments have made economic forecasting more challenging. Trade tensions, starting under President Trump’s administration, have played a huge role in creating this challenge. These were mostly geopolitical uncertainties that made it more difficult for the Fed to forecast economic outcomes with precision. Additionally, the University of Michigan's inflation expectations data continues to be an outlier, further complicating the Fed's projections.
The Fed is taking on some key uncertainties. At the same time, the U.S. Securities and Exchange Commission (SEC) has been waging a regulatory onslaught against the exponentially expanding crypto asset marketplace. Last month, the SEC’s new Crypto Task Force launched a crypto roundtable roadshow. It’s all a piece of their really cool “Spring Sprint Toward Crypto Clarity” action. These stakeholder conversations have helped illuminate key regulatory issues around this vibrant Forex market. They provide incredible insights for new and seasoned traders alike.
This first public roundtable in this series starts tomorrow. It aims to help attendees navigate the complexities of the Forex market, which remains one of the most dynamic financial markets globally. EUR/USD sessions will include perspective from the leading brokers expected to be driving the majority of trading in EUR/USD by 2025. What sets these brokers apart are their tight spreads, fast order execution speed, and powerful trading platforms.
The SEC's initiative reflects a broader effort to establish clearer regulatory frameworks for crypto assets, addressing market participants' concerns and fostering a more transparent trading environment. This is an important step as the crypto market is changing quickly, requiring a new regulatory approach.