Fed’s Williams Cautiously Optimistic About Inflation, Not Ready to Consider Interest Rate Cuts Yet
Federal Reserve Bank of New York President John Williams said on Tuesday that he is cautiously optimistic about the outlook for inflation, but that the central bank is not yet ready to consider cutting interest rates.
In a speech at the Economic Club of New York, Williams said that the Fed is making progress in bringing inflation down from its current high levels, but that more work remains to be done.
He said that the Fed will continue to raise interest rates as necessary to bring inflation back to its 2% target.
Williams’ comments come as the Fed prepares for its next meeting on March 21-22. The market is widely expecting the Fed to raise interest rates by a quarter-percentage point at that meeting.
However, Williams said that the Fed is not yet ready to consider cutting interest rates.
I think it’s too early to talk about cutting rates, Williams said. We still have a lot of work to do to bring inflation down.
Williams’ comments suggest that the Fed is likely to continue raising interest rates for some time to come.
Here are some of the key points from Williams’ speech:
- The Fed is making progress in bringing inflation down, but more work remains to be done.
- The Fed will continue to raise interest rates as necessary to bring inflation back to its 2% target.
- The Fed is not yet ready to consider cutting interest rates.
Kind regards E. Thompson.
