NY Fed President, influential FOMC member John Williams said on Friday that inflation is way too high right now, but there are some reasons for optimism that it will come down, according to Reuters.
- “Businesses that rely on people commuting to work in the office are seeing a slower recovery.”
- “The Fed has to stick to a transparent and predictable as possible approach.”
- “The labor market is strong and job openings are high.”
- “The Fed can manage the soft landing of keeping the economy in a strong place while restoring balance between demand and supply.”
- “There’s a lot of uncertainty around supply chain issues and inflation.”
- Williams’ baseline outlook is that supply chain issues will gradually recede.
- “Raising interest rates from near-zero levels in March makes sense under various scenarios.”