Williams Says Unemployment Rate May Rise as Fed Fights Inflation

The US central bank’s interest-rate increases may lead to somewhat higher unemployment as it attempts to bring about a “soft landing” while tackling high inflation, New York Fed President John Williams said.

“When I think of a ‘soft landing,’ it’s really a matter of ‘Yes, we could see growth below trend for a while, and we definitely could see unemployment moving up somewhat, but not in a huge way’,” Williams said Tuesday while answering questions after a speech at a symposium in Eltville, Germany.