Federal Reserve Williams: Current Monetary Policy Is Appropriate to Address Short-Term Inflation Risks

The New York Fed President Williams stated on Monday that the current monetary policy stance is appropriate to cope with the risk of rising inflation in the short term. He pointed out that the Middle East conflict could trigger supply shocks, push up inflation, and suppress economic activity. The related impacts have already begun to manifest, and supply chain disruptions are also appearing. Although the inflation outlook is highly uncertain, rising energy prices will push up overall inflation in the coming months; if the conflict ends and oil prices fall back, some of the increases may reverse. Williams did not hint at any recent adjustments to monetary policy. In his speech, Williams said he expects U.S. economic growth to be about 2.5% this year, with inflation reaching 2.75%, then falling back to the 2% target next year. He also stated that unemployment rates are expected to decline over the next two years. Williams's outlook on inflation and employment is more optimistic than most of his Federal Reserve colleagues.
(From Jin10 Data APP)