New York Fed President John Williams said he’s expecting real GDP to grow by 7% this year, and 3-3.5% next. Unemployment rate is seen as coming down to 4.5% by year end. He reiterated that the sharp rise in inflation is “mostly temporary”. He’s expecting inflation to be at around 3.5% this year and to come down next year.
Williams also emphasized that right now, it’s “really about watching the data and seeing how quickly the economy can recover.” The timing of slowing down the pace of asset purchases will be “driven by data”.
“One of the lessons of the taper experience from years ago is the importance of getting the right time and communicating transparently to the public,” he added.
