New York Fed President Williams said on Thursday that more interest rate hikes are needed to keep inflation under control.
In an interview with Fox Business, the governor said, “There is still work to be done in terms of the current level of the Federal Funds (FF) rate target to reach a sufficiently constraining stance and the level it needs to reach next year. I think there is,” he said. “I see the federal funds rate needing to be above inflation, and well above it, to fundamentally put downward pressure on inflation,” he said.
US Personal Consumption Expenditure (PCE) Composite Price Index in October 6.0% YoYriseHowever, growth slowed from 6.3% in the previous month. Williams said he expects inflation to slow down “significantly” next year. But he warned that the government’s target of 2% may not return until 2025.
“Some of the forward-looking indicators show that inflation is changing direction,” he said.
news-rsf-original-reference paywall">Original title:Williams Says Fed Has a Ways to Go Before Rates High Enough(excerpt)
