Federal Reserve Bank of New York President John Williams delivered a sobering assessment of inflation on Thursday, saying that while price pressures may ease somewhat this year, they are still far too high for comfort.
Williams pushed back his timeline for when inflation could return to the Federal Reserve’s 2% target, signaling the fight against rising prices is far from over.
In the text of a prepared speech, Williams stated that “inflation is unquestionably elevated and well above the (Federal Open Market Committee’s) longer-run goal of 2%,” adding that “it is imperative that we restore it to our 2% longer-run goal on a sustained basis.”
Williams noted that the current interest rate policy is considered “well positioned” to help reduce inflationary pressures, even as he acknowledged that the central bank’s price stability mandate has yet to be fully met.
