The Federal Reserve can reduce inflation while keeping the US economy strong, the New York Fed chairman John Williams said today.
“While it is a difficult task, it is not insurmountable. We have the tools to restore balance to the economy and restore price stability and we are determined to use them,” Williams said at a conference in Germany.
The Fed has already raised its interest rate to 0.75% to 1% and Williams said the central bank will move very fast to push its interest rates to “more normal” levels this year.
Fed Chairman Jerome Powell has already said that the bank plans to raise interest rates by 100 basis points in the next two monetary policy sessions, bringing them to 1.75% to 2%.
At the same time, the Fed will start reducing its balance sheet size from a record $ 9 trillion this summer. USD
“Our monetary policy decisions will lead to a slowdown in the demand side of the equation,” Williams said.
Source: Capital
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