Fed’s Williams on inflation progress: Our work is not done

New York Fed President John Williams acknowledged the “meaningful progress” made in balancing the economy and “bringing inflation down.” But he also emphasized that the Fed’s is far from over with the assertion. “Our work is not done” he said in a speech overnight.

Williams highlighted the need for continued restrictive stance in monetary policy “for some time”. He added, “it will only be appropriate to dial back the degree of policy restraint when we are confident that inflation is moving toward 2% on a sustained basis.”

Addressing the economic outlook, Williams described it as “highly uncertain” and stressed that Fed’s policy decisions will be made on a meeting-by-meeting basis. These decisions will be grounded in “the totality of the incoming data, the evolving outlook, and the balance of risks.”

Williams refrained from predicting when a rate cut might occur, stating, “I’m not making a prediction.” However, he also noted that the Fed is currently in a “good place” to assimilate incoming data and deliberate on future policy moves.