Federal Reserve Bank of New York President John Williams

  • US inflation still too high, Fed has more work to do on rate rises
  • Lowering inflation will need period of slower growth, softer job market
  • Fed must stay the course until inflation is brought back to 2%
  • Balance sheet reduction is going well
  • Sees signs inflation pressures starting to moderate
  • Expects inflation to cool to 3% this year
  • Expects US growth of 1% this year
  • Expects US unemployment to rise to 4.5% this year
fed williams

The Federal Open Market Committee (FOMC) meet next week. Various Fed Presidents and officials have been running the +25bp rate hike up the flagpole (as opposed to +50). No clue given from Willaims here on that question really. Perhaps in the Q&A. Stay tuned.