New York Fed President and FOMC voter John Williams said on Friday (18th) that he thinks it is appropriate for the Federal Reserve to raise interest rates starting in March in response to high inflation and strong job growth s Choice.
After raising interest rates in March, the next step for the central bank would be to reduce purchases of U.S. Treasuries and mortgage-backed securities (MBS), which is expected to start later this year, Williams said Friday at an online event hosted by New Jersey City University. plan.
Williams believes that supply chain issues will slowly fade over time, helping to ease some inflationary pressures while helping the Fed achieve its goal of “controlling inflation without triggering a recession.”
“I hope we can have a soft landing, which is to keep the economy strong and growing, while restoring supply and demand,” he said. Williams expects U.S. real GDP growth to be just under 3 percent this year, with unemployment expected by the end of the year. dropped to around 3.5%.
As supply chain issues improve, Williams sees the personal consumption expenditures (PCE) price index slipping to around 3 percent this year and falling further next year.
