The Fed has dramatically increased the cost of short-term borrowing this year in its battle to curb inflation. Because of this preferred measure of the Bank, inflation rose to more than three times the target central bank This year of two percent.
While pointed Williams To some signs of a move toward lower inflation, he said interest rates needed to be raised even further.
added "The amount of price hike will depend on how it develops Economy and inflation".
Williams is the vice chair of the rate-setting Federal Open Market Committee, which is scheduled to hold its next policy meeting on December 13-14. The US Central Bank was able to adopt higher-than-usual price increases of 75 basis points over its last four meetings, making the target price at the current price between 3.75% and 4%.
Fed officials indicated during the November meeting, and in comments since then, that they may find space to slow increases in borrowing costs as they approach a break point in their campaign to raise rates. This opened the door to the possibility that the central bank may raise the target price by 50 basis points at the next meeting.
Williams gave no indication of how much he would prefer to raise interest rates at next month’s meeting, or on the maximum rate that most policymakers predicted in September would be between 4.5 percent and 5 percent.
And with the expectation that it will be Economic growth Slim this year and next, Williams said Unemployment rate It is likely to rise to between 4.5% and 5% by the end of next year, up from the current rate of 3.7%.
But he said that he does not expect a fundamental occurrence depression Although there are risks in this direction.
Should slow down global growth Improved supply chains contribute to reducing inflation. Williams said inflation should fall to between 5% and 5.5% by the end of 2022 and to between 3% and 3.5% next year.
He added that the market bond acceptably coherent under the actions he takes American Central.
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“I think we’ll need to maintain… Tightening monetary policy For some time, and I expect that to continue next year at least,” he said, adding that costs borrow Need to raise them to lower inflation who so rose. “I see a stage, maybe in 2024,” when the reserves start, he said Federal in cut Benefit Because inflation will go down.”
The Fed has dramatically increased the cost of short-term borrowing this year in its battle to curb inflation. Because of this preferred measure of the Bank, inflation rose to more than three times the target central bank This year of two percent.
While pointed Williams To some signs of a move toward lower inflation, he said interest rates needed to be raised even further.
“The amount of price hike will depend on how it develops Economy and inflation.”
Williams is the vice chair of the rate-setting Federal Open Market Committee, which is scheduled to hold its next policy meeting on December 13-14. The US Central Bank was able to adopt higher-than-usual price increases of 75 basis points over its last four meetings, making the target price at the current price between 3.75% and 4%.
Fed officials indicated during the November meeting, and in comments since then, that they may find space to slow increases in borrowing costs as they approach a break point in their campaign to raise rates. This opened the door to the possibility that the central bank may raise the target price by 50 basis points at the next meeting.
Williams gave no indication of how much he would prefer to raise interest rates at next month’s meeting, or on the maximum rate that most policymakers predicted in September would be between 4.5 percent and 5 percent.
And with the expectation that it will be Economic growth Slim this year and next, Williams said Unemployment rate It is likely to rise to between 4.5% and 5% by the end of next year, up from the current rate of 3.7%.
But he said that he does not expect a fundamental occurrence depression Although there are risks in this direction.
Should slow down global growth Improved supply chains contribute to reducing inflation. Williams said inflation should fall to between 5% and 5.5% by the end of 2022 and to between 3% and 3.5% next year.
He added that the market bond acceptably coherent under the actions he takes American Central.