New York Fed President John Williams estimated on Tuesday that personal consumption expenditures (PCE) core inflation, which excludes food and energy prices, will stand at "nearly" 4% for 2022 before falling to around 2.5% in 2023. In April, the core PCE price index grew by 5.2% on a yearly basis. He conceded that current inflation levels are "unacceptably high."
Williams reiterated the Federal Reserve must be data-dependent and adjust policy according to circumstances. He assured the Fed will act "expeditiously" in order to bring the interest rate to more normal levels in 2022, adding that there is a "path forward for a soft or softish landing."
