Fed official Williams spoke after the release of key inflation data in the United States today!
Based on the latest US Producer Price Index (PPI) data, Fed official John Williams made a series of statements on the economic outlook and the Fed's future actions.
The number of initial jobless claims in the United States was announced at 211,000, lower than the expected 216,000 and the previous value of 222,000. The core PPI (annual rate) in March was 2.4%, slightly higher than the expected 2.3%, and significantly higher than the previous 2.0%. The overall PPI (annual) in the United States in March was 2.1%, lower than the expected 2.2%, but higher than the previous value of 1.6%.
Williams emphasized that the outlook is uncertain and the Fed should rely on data. Williams also announced that the Fed will start cutting interest rates this year, indicating a change in monetary policy.
Williams said that the Fed has made "significant progress" in reducing inflation. He also said that there is evidence that reserve levels remain ample, which may affect the Fed's interest rate decision.
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Williams said the job market remains strong despite uncertainty. Fed officials expect U.S. GDP to reach 2% this year and are committed to returning inflation to 2%.
Looking ahead, Williams expects unemployment to rise to 4% this year. He expects inflation to be 2.25-2.5% this year. Williams said the risks between inflation and unemployment are moving toward a better balance.
