Fed, Williams: “still a long way to go” towards 2% inflation

USA Fed alza tassi a massimi da 22 anni Non

(Finance) – “In the last two years the FOMC has adopted a restrictive monetary policy with the aim of bringing inflation back to 2% in a lasting way. Given the progress we have observed, the risks linked to the achievement of our objectives of maximum employment and price stability they are achieving a better balance“. This was stated by the president of the Federal Reserve Bank of New York, John Williamsin a speech at the Long Island Association Regional Economic Briefing.

I expect inflation to continue its path back to 2%although there will likely be bumps along the way, as we’ve seen in the most recent consumer price index data,” he explained. “To be more specific, I expect PCE inflation to be around 2-2, 25% this year and 2% next year.”

“The risks to this forecast are bilateral – said Williams – Inflation could surprise on the upside, or the strength of consumersa major driver of the robust growth we saw in 2023, may fade more quickly than I predict.”

We still have a long way to go on the journey to sustained inflation of 2%,” the central banker argued.