Fed’s Williams says fight against inflation could last until 2024

Fed’s Williams Says Inflation Fight Could Last Into 2024

John Williams, president of the New York Federal Reserve, notes that price pressures are easing but says inflation can be kept above 3% in a year.

According to senior Federal Reserve officials, inflationary pressures are expected to ease over the next year. However, they warn the central bank will have to keep working because prices may slow to levels still above the Fed’s 2% target.

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During a speech on Monday, New York Fed President John Williams said, “There’s still more work to be done,” doing nothing to counter expectations that the central bank will raise rates by half a percentage point at its meeting next month.

John C. Williams said that he expects the inflation rate to slow to 5% to 5.5% by the end of this year and to 3% to 3.5% next year. Inflation rose 6.2% in the 12 months ending in September, this data using the Fed’s preferred gauge.

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Those declines reflect global cooling demand and easing supply chain bottlenecks, which could sharply curb price growth for goods that rely heavily on imported raw materials and components.

Inflation would remain above the Fed’s 2% target after those falls; Williams said reducing underlying price pressures, including those reflecting rising domestic wages, will require further policy tightening to slow Economic activity and demand.

A sharp slowdown in residential rents and signs of reduced demand for workers indicate that inflationary pressures may be improving, which could moderate wage growth.

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