New York Fed President John Williams said, “we need to have somewhat restrictive policy to slow demand and we’re not there yet.” Nevertheless, the size of the rate hike at the September meeting will depend on the “totality” of data.
Going forward, “from my perspective right now, I see us needing to kind of hold a policy stance – pushing inflation down, bringing demand and supply into alignment – it’s going to take longer, will continue through next year,” he said.
“Based on what I’m seeing in the inflation data, and what I’m seeing in the economy, it’s going to take some time before I would expect to see adjustments of rates downward.”
