Fed's Williams: Inflation Target Still Out of Reach‼️‼️‼️‼️‼️‼️‼️‼️‼️‼️
New York Federal Reserve President John Williams stated today that while significant progress has been made in reducing inflation, the target of 2% is still out of reach. Speaking at an event at the Reserve Bank of India in Mumbai, Williams noted that inflation has cooled to 2.5%, but more work needs to be done to sustainably reach the Fed's target.
Williams emphasized the Fed's commitment to achieving the goal, despite the challenges posed by artificial intelligence, climate change, deglobalization, and financial innovations. He acknowledged the uncertainty that will continue to define the monetary policy landscape but expressed confidence in the principles and lessons learned to guide future decisions.
The Fed's preferred measure of inflation, the core personal consumption expenditures price index, showed a modest increase of 0.1% in May, the smallest advance in six months. This has boosted expectations that the US central bank will begin easing later this year. Fed officials will meet next on July 30 and 31 to discuss future policy moves.
