New York Fed President John Williams said overnight that it made sense for the central bank to ease policy “a little bit” to reduce restrictiveness to support the labor market while maintaining downward pressure on inflation.
Williams acknowledged progress toward the 2% inflation target but cautioned that more work remains. He underscored the Fed’s dual mandate, stressing the need to avoid “undue harm” to employment at a time when job creation has been gradually weakening. “I don’t want to see that go too far,” he said.
Encouragingly, Williams noted that some inflation worries have eased “”The tariff effects have been smaller than most people thought, and there doesn’t seem to be any signs of inflationary pressures building,” he noted.
