New York Federal Reserve President John Williams said he is less concerned about inflation expectations, signaling confidence that price pressures are easing.
Although uncertainty remains, Williams said it is unclear whether it is slowing economic growth. He also reaffirmed that the US remains in a low neutral rate environment, suggesting interest rates may not need to rise further. He believes monetary policy is restrictive enough to keep inflation in check while supporting economic stability.
Earlier, Williams predicted the US economy would expand by about 2% this year and next. He said the current policy is set to bring inflation down to 2% while keeping the job market strong. He said he expects inflation to hover around 2.5% this year before gradually moving toward the Federal Reserve’s target.
