The president of the Federal Reserve Bank (FED) of New York, John Williams, predicted slightly higher inflation and unemployment during the rest of the year on Tuesday, as well as slower growth metrics than expected. As head of the New York Fed, Williams is a permanent voter of the Federal Open Market Committee (FOMC) and has a significant influence on Fed’s policy decisions.
Outstanding aspects
It is appropriate to maintain the current policy position.
The economy continues in a good place.
Companies are moving customer tariff costs.
I hope that real GDP growth slows around 1% this year.
Uncertainty about inflation and immigration is high.
There are signs that inflation is affecting some categories of goods.
A modestly restrictive monetary policy gives space to examine new data.
The US economy is in good place, the labor market is still solid.
Uncertainty, tariffs and immigration reduction will slow down the economy.
The unemployment rate is expected to increase around 4.5% by the end of the year.
Tariffs will boost 3% inflation this year.
Inflation is expected to gradually decrease 2% in the next two years.
It indicates weak soft data against more resilient hard data.
The economy will grow at a slower pace this year, and the labor market will remain solid.
Tariffs can be adding a quarter percentage to inflation at this time.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
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