NY Fed President John Williams predicts gradual reduction of policy restraint if economic progress continues; inflation returns to 2%, unemployment peaks at 4% this year.
New York Fed President John Williams said the US central bank has made "tremendous progress" in lowering inflation, but the uncertain outlook means it must remain data-dependent. Williams did not explicitly comment on his outlook for rates, but said "if the economy proceeds as expected, it will make sense to dial back the policy restraint gradually over time, starting this year". Williams expects inflation to continue its gradual return to 2% and the unemployment rate to peak at 4% this year.
April 11, 2024
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