Fed’s Williams Says Tight Labor Market Warrants Higher Rates
- Says Fed will ‘do what’s necessary’ to lower inflation to 2%
- ‘It could be higher than what we’ve written down’: Williams
John Williams
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Federal Reserve Bank of New York President John Williams said that while inflation has showed some signs of slowing, a tight labor market and other factors are likely to keep price pressures elevated and warrant high interest rates for some time.
“We have clear signs that demand exceeds supply in our labor market” and broader economy, Williams said Friday during an interview on Bloomberg Television with Kathleen Hays. He expects inflation to slow to the 3% to 3.5% range next year, but “the real issue is how do we get it all the way” to 2%, Williams said.