Fed's Williams - important to understand that the dynamics of inflation are complicated

Williams is the president of the New York Fed. As such he has a permanent voting seat on the FOMC.

• important to understand that the dynamics of inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term are complicated
• says he sees CPI this year at around 3.75%, there is a lot of uncertainty around the outlook for inflation
• expects to have inflation back at 2% by 2025
• the stability of the unemployment rate has been a striking development, expects the jobless rate to gradually rise to 4 - 4.5%
• sees rent-related inflation pressures coming down sharply
• core services excluding housing have been very persistent
• Market policy expectations are tricky to measure

• Doesn't worry if market view on rates is different than Fed's view
• Happy to see market rate expectations are reactive to data
• Rate rises by the Fed were not driver of trouble at banks sparking recent stresses
• Haven't seen clear signs of a credit tightening

Williams is participating in a moderated discussion organized by the Economics Review at NYU.