New York Fed President Williams spoke earlier , says US inflation will hold around 3% this year as Middle East energy disruptions cloud the outlook, while warning oil markets may be too relaxed about supply shock risks Summary: New York Federal Reserve President John Williams…
New York Fed President Williams spoke earlier , says US inflation will hold around 3% this year as Middle East energy disruptions cloud the outlook, while warning oil markets may be too relaxed about supply shock risks Summary: New York Federal Reserve President John Williams described current US monetary policy as well positioned to navigate elevated economic uncertainty stemming from the Middle East conflict, per his remarks to the Cynosure Group in New York Williams projected US inflation will remain around 3% this year before returning to the Fed’s 2% target, with economic growth forecast at between 2% and 2.25% and unemployment expected to hold between 4.25% and 4.50%, according to his speech Williams cautioned that energy market pricing reflects a relatively benign view of the oil price outlook, but warned that several credible scenarios point to more severe supply dislocations and price impacts, per his comments The New York Fed chief said he saw no data at this stage indicating a need for a rate hike in the near term, but declined to offer firm guidance on the rate path over the next several meetings, according to remarks to reporters Three regional Fed presidents, from Cleveland, Dallas and Minneapolis, dissented at last week’s policy meeting over retention of easing bias language in the statement, per the source material Williams said he fully supported the Fed’s current policy language and maintained that rate cuts will be necessary at some point once inflation returns to target, according to his post-speech comments New York Federal Reserve President John Williams used a speech in New York City on Monday to reassert that US monetary policy is well placed to manage the elevated uncertainty flowing from the Middle East war, while delivering a quiet but pointed warning that energy markets may be misjudging the scale of the risk ahead. Speaking before the Cynosure Group, Williams said the risks to both sides of the Fed’s dual mandate, price stability and…