Source: Jin10 Data
Williams pointed out during his activities in India that he "has confidence" that the Fed is on track to achieve its 2% inflation target.
New York Fed Chair Williams said that although inflation has cooled to the Fed's 2% target level in recent months, policy makers are still some distance away from achieving their goal.
Williamson said at an event in Mumbai, India, on Friday, "The current inflation rate is around 2.5%, and we have made significant progress in reducing the inflation rate. But we still have some way to go to achieve our 2% target. We are committed to completing this task."
Earlier this week, the New York Fed chief said he was "confident" that the Fed was on track to achieve its 2% inflation target.
A report released last week showed that the Fed's preferred inflation gauge slowed in May, strengthening the case for the central bank to start easing policy later this year. The so-called core personal consumption expenditures (PCE) price index rose just 0.1% from the previous month, the smallest increase in six months.
Federal Reserve officials at their policy meeting last month held rates steady, keeping them at their highest point in over two decades and signaling they expect fewer rate cuts this year than they did in March. Fed officials will meet again on July 30 and 31.
When asked about the impact of the Fed's balance sheet on U.S. stock valuations, Williams played down direct links between the two but noted that recent Wall Street performance reflects the economy as well. "The market is paying attention to the U.S. economy, and I would say the Indian economy, and the economy and stock market are showing quite consistent strength," he said during a question-and-answer session after his opening remarks.
"In some cases, valuations are indeed somewhat overvalued. But overall, the market reaction is a response to a more optimistic future for the United States," he said. Global stock markets hit fresh highs ahead of Friday's U.S. jobs data, which is expected to show a slowdown in hiring.
Williamson said: "The economy has performed very well. The unemployment rate is low and the economy is growing well. So I think some of the positive momentum in the market is really based on that."Global stock markets hit fresh highs ahead of Friday's U.S. jobs data, which is expected to show a slowdown in hiring.
Williams stressed the importance of "anchoring stable" inflation expectations in his speech. He also highlighted "perennial challenges" such as measuring the so-called neutral interest rate.
In his speech, Williams emphasized the importance of anchoring stable inflation expectations. He also pointed out the "eternal challenges" of measuring the so-called neutral interest rate.
The resilience of the U.S. economy has sparked a discussion about the so-called long-term neutral interest rate, a level of interest rates that neither stimulates nor suppresses activity.
Williams dismissed recent comments that the neutral interest rate has risen since the pandemic. In a speech on Wednesday, he quoted neutral interest rate predictions, saying he believed the U.S. and euro area neutral interest rates were close to pre-COVID-19 levels.
According to median forecasts, officials raised their estimates for long-range rates to 2.8% in June, up from 2.6% at the March meeting. The increase followed a small rise in March.
Friday's non-farm payrolls data showed that the U.S. unemployment rate rose again in June, but job gains for the month again slightly exceeded expectations. The U.S. added 206,000 jobs in June, more than the expected 190,000 jobs, which were revised down from 272,000 in May. The average monthly job gain for the previous 12 months was 220,000; the unemployment rate unexpectedly climbed to 4.1%, its highest level since November 2021; and average hourly earnings rose 3.9% year on year in June, the smallest increase since 2021.
Editor / jayden