New York Fed President John Williams said today that November’s inflation data were likely distorted by “technical factors”, cautioning against overinterpreting the downside surprise. He estimated that such distortions may have pushed the CPI reading down by around a tenth of a percentage point.
Williams said it remains difficult to fully assess the size of the impact until December data become available, which should provide a clearer picture of how much the technical effects influenced November’s figures.
On policy, Williams struck a measured tone, saying he does not feel a “sense of urgency” to lower interest rates further. He argued that the cuts already delivered have positioned the Fed well to continue easing inflation pressures while also supporting a labor market that is cooling in an orderly fashion.
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