Federal Reserve's Williams: Current monetary policy is appropriate and sufficient to address short-term inflation risks

Golden Finance reported that on March 31, on Monday, Federal Reserve Bank of New York President Williams said that the current monetary policy stance is appropriate and sufficient to address the risks of inflation rising in the short term. He noted that the war in the Middle East could trigger a supply shock, while also pushing up inflation and suppressing economic activity; the related effects have already begun to show, and there are signs of disruptions in the supply chain. Although the inflation outlook is “very high” in terms of uncertainty, rising energy prices will lift overall inflation over the coming months; if the fighting ends and oil prices fall, some of the gains may reverse. Williams did not indicate any recent adjustment to monetary policy. In his remarks, Williams said he expects the U.S. economic growth rate to be about 2.5% this year, with inflation reaching 2.75%, before falling back to the 2% target level next year. He also said he expects the unemployment rate over the next two years to decline somewhat. Williams’ outlook on inflation and employment is more optimistic than that of most of his Federal Reserve colleagues.