Fed’s Williams Says Longer-Run Inflation Expectations Stable

Federal Reserve Bank of New York President John Williams said longer-run inflation expectations remain stable despite the recent surge in prices, but there is greater uncertainty over the future path for price gains.

“The news is mostly good -- longer-run inflation expectations in the United States have remained remarkably stable at levels broadly consistent” with the central bank’s goal, Williams said Wednesday on a conference in Zurich organized by the Swiss National Bank, the Fed and the Bank for International Settlements. “Inflation uncertainty has increased, but this does not appear to be due to unmoored longer-run expectations.”