New York Fed President John Williams said yesterday, “We will we stay the course until our job is done… We must restore balance to the economy and bring inflation down to 2 percent on a sustained basis.”
“We need all the gears turning at the right pace to restore balance between demand and supply in the entire economy,” said Williams. “We still have some way to go to achieve that goal.”
He expects core inflation, as measured by core PCE reading at 4.4% in December, to fall to 3% this year and then 2% over the next few years. Growth will likely slow to just 1% this year, with unemployment rate to rise to between 4% and 5%.