Economics
Fed's John Williams Warns of Risks of Low Inflation Expectations
- New York Fed chief says central bank shouldn’t be complacent
- Urges Fed to review inflation-targeting framework this year
John Williams
Photographer: Bloomberg/BloombergThis article is for subscribers only.
Federal Reserve Bank of New York President John Williams voiced concerns that inflation expectations may have slipped downward after years in which price rises have failed to reach the central bank’s 2 percent target.
“We have seen some worrying signs of a deterioration of measures of longer-run inflation expectations in recent years,” Williams said Friday in a speech in New York. “The risk of the inflation expectations anchor slipping toward shore calls for a reassessment of the dominant inflation targeting framework.”