Federal Reserve Bank of New York President John Williams said inflation remains persistent and the Fed must keep working toward its 2% goal, a signal for the U.S. borrowing-cost outlook.
Williams joined a panel at the UC Berkeley Alumni Salon in New York on Thursday, Nov. 12, according to the New York Fed's event schedule. The listing described a moderated question-and-answer session at 6:30 p.m. ET, with no prepared remarks expected. FXStreet reported that Williams said the Fed needed to continue acting to return inflation to 2%. Reuters also reported that he described economic activity as firm and the labor market as strengthening, while price pressures persisted.
Reuters characterized Williams' comments as pointing to further interest-rate increases, but reported that he gave no date or estimate for another move. Fed data showed the target range at 3.75% to 4.00% as of Oct. 29.
The Federal Open Market Committee (FOMC) defines its longer-run inflation goal as 2%, measured by the annual change in the personal consumption expenditures (PCE) price index. That target concerns the pace of price increases; it does not mean prices return to where they stood before earlier inflation. EconoTimes previously covered Williams' call for policy action over time.
Reuters reported that Williams said Fed policy can slow price growth, even as people continue to face living costs raised by past inflation. He also cited wars and the pandemic when explaining why central banks focus on lowering inflation instead of reversing past price increases. The distinction means slower inflation would not, by itself, erase those earlier increases.
The FOMC's next meeting is scheduled for Dec. 8-9. The Fed's calendar lists the policy statement for 2 p.m. ET on Dec. 9.
