New York Fed Chairman Williams said on Thursday that more interest rate hikes were needed to keep inflation in check.
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 rate target to achieve a sufficiently binding position and the level it needs to achieve next year.” I think there is,” he said. “We see that the federal funds rate has to be above inflation, and well above it, to put fundamentally downward pressure on inflation,” he said.
US Personal Consumption Spending (PCE) Composite Price Index in October 6.0% YoYclimbHowever, growth slowed from 6.3% the previous month. Williams said he expects inflation to slow “significantly” next year. But she warned that the government’s 2% target 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 the Fed has a long way to go before rates are high enough(extract)
