Fed’s Williams Expects Policy to Stay Restrictive for Some Time
- New York Fed chief says policy ‘most restrictive in 25 years’
- Inflation, spending data show economy shifting into lower gear
John Williams
Photographer: Victor J. Blue/BloombergThis article is for subscribers only.
Federal Reserve Bank of New York President John Williams reiterated the Fed’s benchmark lending rate is at or near its peak level and said monetary policy is “quite restrictive.”
Rates are “estimated to be the most restrictive in 25 years,” Williams said on Thursday at the Bretton Woods Committee conference at the New York Fed. “I expect it will be appropriate to maintain a restrictive stance for quite some time to fully restore balance and to bring inflation back to our 2% longer-run goal on a sustained basis.”