The chairman of the New York Federal Reserve (Fed), John Williamssaid on Friday that Long-term inflation expectations are in line with the central bank’s 2% target.
If inflation expectations are anchored too low, that will reduce real inflation over time..
There is great uncertainty about the current economy.
The House prices in the United States are rising very rapidly and asset valuations are quite high.
House prices were driven higher by a low interest rate environment and pandemic factors.
Higher house prices do not pose a risk to financial stability and banks are better capitalized than during the last crisis.
The Fed should focus on the security of new payment technologies.
It is important to think about the positives of digital currencies, but also the risks for consumers, investors, and financial stability.