The president of Federal Reserve Bank of New York, John Williamswelcomed the arrival of softer data on the inflation consumption, but stated that the positive news is not enough to ask the Federal Reserve (Fed) to cut interest rates soon.
“It’s kind of a positive development after a few months where the data was disappointing,” Williams said in an interview with Reuters on Wednesday about the Consumer Price Index (CPI) released on Tuesday. “The general trend seems reasonably good” for a gradual slowdown in inflationary pressureshe added.
But he is still not confident enough that price pressures are moving sustainably toward the target. inflation of 2% of the Fed. Monetary policy is “tight and in a good place,” Williams said. “I don’t see any indicators now that tell me that there is a reason to change the stance now and I don’t expect to get that greater confidence in the progress of inflation in the very short term,” he stressed.
The head of the New York Fed, one of the most important voices of the US central bank who also serves as vice president of the Federal Open Market Committee The FOMC, the rate-setter, was interviewed following inflation data that indicated a welcome slowdown, renewing hopes for Wall Street that the interest rate cut would begin this year.
The general CPI for April rose 3.4% compared to the previous year, below the 3.5% in March, while prices excluding food and energy rose 3.6%, the smallest increase in three years.
This year, data from inflationhigher than expected, have complicated the outlook for the monetary policy of the Booking Federal. In March, those responsible for the Fed They anticipated three rate cuts over the course of 2024, but persistent inflation has led them to move away from firm rate cut projections. Some officials have even considered possible rate increases.
Source: Ambito
