(Finance) – “I believe that some of the recent inflation data mostly represents a reversal of the unusually low values of the second half of last year, rather than a break in the general direction of downward inflation. With the economy over time it is reaching a better balance and ongoing disinflation in other economies which reduces global inflationary pressures, I expect inflation to moderate again in the second half of this year“. This was stated by the president of the Federal Reserve Bank of New York, John Williamsat an Economic Club of New York event.
According to the central banker, “the behavior of the economy over the past year provides ample evidence that the monetary policy is restrictive in a way that helps us achieve our goals“.
Williams believes that the current direction of monetary policy is “well positioned to continue the progress made towards achieving our goals.”
According to the number one of the New York Fed, it is “needless to say that the prospects are uncertain. The risks are bilateral, and geopolitical events and China’s growth prospects are a clear example of this. For this reason we will continue to keep an eye on the totality of the data, in order to make policy decisions that ensure we bring inflation sustainably back to 2%, while maintaining a strong labor market.”
“Over the past two years we have seen much progress towards our goals – he underlined – I am confident that we will restore price stability and lay the foundation for sustained economic prosperity. We are committed to getting the job done“.
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