Federal Reserve Bank of New York President John Williams stated on Tuesday that he remains "very focused" on the impact of banks' stricter credit conditions on the overall economic situation.
According to Williams, Fed is prepared to raise interest rates again, should more aggressive policy be needed to "bring back balance," adding that he does not see any reason to cut rates this year.
The banker predicted that the unemployment rate will arrive somewhere between 4% and 4.5% this year and reiterated his assessment that demand continues to outpace supply and that inflation should drop to 3.25% in 2023.
