NY Fed Pres. and voting member Willaims is apeaking and says:
- Iran war impact will drive up headline inflation
- things that inflation from Iran war will go directly into headline.
- Inflation given energy. Inflation issue should be around 2.75%.
- it is very focused on underlying inflation.
- Story on core inflation hasn’t changed very much.
- Hasn’t change story much on core inflation despite war.
- Tariffs remain a big part of the inflation story.
- Monetary policy as well positioned to wait and see.
- Monetary policy exactly where it needs to be, can be changed as needed.
- Expects 2% to 2.5% GDP this year with stable unemployment rate.,
- Labor market situation is pretty complicated
- Labor market is low higher, low fire.
- Expects underlying inflation to moderate later this year
- Says that the US has some of the best productivity from around the world.
- Tech is making a big difference
- As long as the economy is a growing waves things that consumer spending will continue.
- US economy is remarkably resilient.
- Compensation is growing at a rate that is consistent with productivity growth, not pressuring inflation.
- Businesses have been adapting to more uncertain that they see in the economy
Fed’s Williams: Iran war will drive up headline inflation
