The News
The head of the Federal Reserve Bank of New York said he doesn’t “feel urgency” to cut U.S. interest rates soon, as inflation stubbornly remains above the Fed’s 2% target.
“Monetary policy is in a good place. I think we’ve got interest rates in a place that is moving us gradually to our goals,” said John Williams, president and CEO of the New York Fed. He said economic data will inform future policy.
Williams said the higher, unchanged interest rates “haven’t caused the economy to slow too much.” He acknowledged that inflation has been a bit of a “bumpy road,” but overall, “the trend is that inflation is gradually coming down.”
The latest higher-than-expected inflation numbers led to speculation that the Fed may not cut interest rates until September, or possibly not at all this year.
However another summit speaker, Kevin Warsh, a former member of the Federal Reserve Board of Governors, gave a scathing review of the current Fed’s policy moves, saying it needed “deep introspection.”
“Inflation’s a choice. It’s a choice largely by the fiscal and monetary authorities,” Warsh said. “The Fed isn’t a victim ... The Fed is responsible for the inflation rate and the Fed needs to take ownership of it.”