American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

N.Y. Fed President John Williams says inflation is too high but will start coming down soon

by admin June 2, 2024
June 2, 2024
N.Y. Fed President John Williams says inflation is too high but will start coming down soon

New York Federal Reserve President John Williams on Thursday said inflation is still too high, but he is confident it will start decelerating later this year.

With markets on edge over the direction of monetary policy, Williams offered no clear indication of his position on possible interest rate cuts. Instead, he reiterated recent positions from the central bank that it has seen a “lack of further progress” toward its goals as inflation readings have been mostly higher than expected this year.

“The honest answer is, I just don’t know,” Williams said during a Q-and-A session with CNBC’s Sara Eisen before the Economic Club of New York. “I do think that monetary policy is restrictive and is bringing the economy a better balance. So I think at some point, interest rates within the US will, based on data analysis, eventually need to come down. But the timing will be driven by how well you achieve your goals.”

Williams called the policy “well-positioned” and “restrictive” and said it is helping the Fed achieve its goals. Regarding potential rate hikes, he said, “I don’t see that as the likely case.”

Earlier this year, markets had expected aggressive rate cuts from the Fed this year. But higher-than-expected inflation readings have altered that landscape dramatically, and current pricing is pointing to just one decrease, probably in November.

“With the economy coming into better balance over time and the disinflation taking place in other economies reducing global inflationary pressures, I expect inflation to resume moderating in the second half of this year,” Williams said. “But let me be clear: Inflation is still above our 2% longer-run target, and I am very focused on ensuring we achieve both of our dual mandate goals.”

For nearly a year, the Fed has been in a holding pattern, keeping its benchmark borrowing rate between 5.25% and 5.5%, the highest in more than 23 years.

The Fed is seeking to keep the labor market strong and bring inflation back to its 2% target. Most inflation indicators are near 3% now, and a key reading from the Commerce Department is due Friday.

Inflation as measured through the Fed’s preferred yardstick — the personal consumption expenditures price index — is expected to come in at 2.7% for April, according to the Dow Jones estimate. Williams said he expects PCE inflation to drift down to 2.5% this year on its way back to 2% in 2026.

“We have seen a great deal of progress toward our goals over the past two years. I am confident that we will restore price stability and set the stage for sustained economic prosperity. We are committed to getting the job done,” he said.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Pending home sales in April slump to lowest level since the start of the pandemic
next post
Dow closes more than 570 points higher to post best day in 2024, stocks wrap a winning May

Related Posts

Here’s why Hims & Hers stock price has...

March 27, 2025

M&S cyber attack: share price falls as retailer...

May 21, 2025

In a reversal, Disney’s media assets are starting...

August 9, 2024

Home prices soar even higher in February, despite...

May 5, 2024

Trump era sparks hopes for looser capital rules...

January 18, 2025

Delta CEO offers employees free flights after CrowdStrike-Microsoft...

August 5, 2024

Top FTSE 100 shares forecasts: Glencore, BT Group,...

July 9, 2025

Asian stocks end mixed: China’s CSI 300 climbs...

July 22, 2025

Alphabet earnings beat, but analysts say the numbers...

April 27, 2025

Looking for 75% return within a year? Buy...

May 31, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,563)
    • Investing (2,695)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved