Central Banks
Fed’s Williams Sees Rates Heading to Around 4.5% to Cool Prices
- Fed focused on reducing inflation to 2%, Williams says
- Acknowledges international spillovers but says Fed focus is US
John Williams
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Federal Reserve Bank of New York President John Williams said interest rates need to rise to around 4.5% over time but the pace and ultimate peak of the tightening campaign will hinge on how the economy performs.
“The timing of that and how high do we have to raise interest rates is going to depend on the data,” Williams said Friday during a moderated discussion organized by SUNY Buffalo in western New York. “Right now the focus is getting inflation back down to 2% and doing that in a way that keeps the economy growing.”