New York Fed President John Williams said the Fed’s decision to keep interest rates steady in June was the right decision, but that interest rates may need to be raised again at some point in the face of continued economic strength.
New York Fed President John Williams said Wednesday that while the central bank said it was the right move to hold interest rates steady three weeks ago, he hinted that at some point it may have to raise rates again due to continued economic strength.
Speaking at the event organized by the New York Fed, Williams said, “We have more work to do to balance between supply and demand and bring inflation down. I will depend on the data to consider the steps the Fed will take in the future.”
While Williams declined to answer a question about whether he believed a rate hike was needed in July, he said experts from the New York Fed had not yet begun to work to assist him with his decision.
Williams said inflation is still too high for his comfortable levels, but he also acknowledged that price pressures have eased.
“I’m not happy with where the price pressures are,” Williams said at an event at his bank. He also said labor demand remained high and the economy was handling rate increases “pretty well”.