John C. Williams, the President of the New York Federal Reserve, predicts that while the U.S. inflation rate is currently high, it is expected to fall in the second half of this year.
In an interview with CNBC before starting a New York Economic Club event on May 30, Williams avoided mentioning his views on interest rate cuts, saying that progress in curbing inflation is insufficient.
He expressed confidence in the current monetary policy of the Federal Reserve System (Fed), stating, “I think it’s restrained and is helping to balance the economy.”
He emphasized that while interest rates eventually fall, the timing depends on achieving the target.
Currently, the Fed has set an inflation target of 2%.
Williams also forecasted that U.S. inflation would slow down in the second half of this year as disinflation appears in other economic territories, reducing global inflation pressure.
Williams expressed optimism that the Fed’s efforts to curb inflation over the past two years have yielded significant results, laying the groundwork for price stability and sustained economic prosperity.
