• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick N.Y. Fed President John Williams says inflation is too high but will start coming down soon
Editor's Pick

N.Y. Fed President John Williams says inflation is too high but will start coming down soon

by June 1, 2024
by June 1, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

New York Federal Reserve President John Williams on Thursday said inflation is still too high, but he is confident it will start decelerating later this year.

With markets on edge over the direction of monetary policy, Williams offered no clear indication of his position on possible interest rate cuts. Instead, he reiterated recent positions from the central bank that it has seen a “lack of further progress” toward its goals as inflation readings have been mostly higher than expected this year.

“The honest answer is, I just don’t know,” Williams said during a Q-and-A session with CNBC’s Sara Eisen before the Economic Club of New York. “I do think that monetary policy is restrictive and is bringing the economy a better balance. So I think at some point, interest rates within the US will, based on data analysis, eventually need to come down. But the timing will be driven by how well you achieve your goals.”

Williams called the policy “well-positioned” and “restrictive” and said it is helping the Fed achieve its goals. Regarding potential rate hikes, he said, “I don’t see that as the likely case.”

Earlier this year, markets had expected aggressive rate cuts from the Fed this year. But higher-than-expected inflation readings have altered that landscape dramatically, and current pricing is pointing to just one decrease, probably in November.

“With the economy coming into better balance over time and the disinflation taking place in other economies reducing global inflationary pressures, I expect inflation to resume moderating in the second half of this year,” Williams said. “But let me be clear: Inflation is still above our 2% longer-run target, and I am very focused on ensuring we achieve both of our dual mandate goals.”

For nearly a year, the Fed has been in a holding pattern, keeping its benchmark borrowing rate between 5.25% and 5.5%, the highest in more than 23 years.

The Fed is seeking to keep the labor market strong and bring inflation back to its 2% target. Most inflation indicators are near 3% now, and a key reading from the Commerce Department is due Friday.

Inflation as measured through the Fed’s preferred yardstick — the personal consumption expenditures price index — is expected to come in at 2.7% for April, according to the Dow Jones estimate. Williams said he expects PCE inflation to drift down to 2.5% this year on its way back to 2% in 2026.

“We have seen a great deal of progress toward our goals over the past two years. I am confident that we will restore price stability and set the stage for sustained economic prosperity. We are committed to getting the job done,” he said.

This post appeared first on NBC NEWS
You Might Also Like
  • It was a strong week for retail earnings. That doesn’t spell a consumer comeback
  • U.S. unemployment rate ticks up to 4.3% amid signs of broader economic slowdown
  • At a growing list of airports, TSA PreCheck travelers no longer have to show physical IDs or boarding passes
  • Amazon says employees who don’t comply with the return to office mandate may not get promoted
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Tesla to recall 125,227 vehicles over faulty seat belt warning system
next post
Hiring stays strong for low earners — while job growth for middle- and high-earners slows, Vanguard finds

You may also like

Clean energy stocks fall as Trump bill would tax components...

July 1, 2025

Employment among people with disabilities hits post-pandemic high

July 8, 2023

Autoworkers go on strike at plants at each of the...

September 16, 2023

Wholesale inflation rose 0.6% in February, much more than expected

March 15, 2024

UAW reveals newest strike locations at GM and Ford amid...

September 30, 2023

Professionally monitored alarm systems in Europe and North America surpassed...

December 21, 2022

Meta is finally bringing ads to WhatsApp

June 17, 2025

Consumer price growth falls for 12th-consecutive month to 3%

July 14, 2023

Elon Musk’s Starlink brings internet — and politics — to...

October 3, 2024

Amazon AI scammers duped investors out of millions with ‘passive...

March 19, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Boeing, NASA say Starliner astronaut launch...

    May 26, 2024

    Inflation rate hit 3.2% in July:...

    August 12, 2023

    Moody’s cuts outlook on U.S. banking...

    March 16, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here