29 February 2024

NY Fed’s Williams Says Still ‘Ways to Go’ to Reach 2% Inflation. . . Williams said there are likely to be "bumps along the way" back to 2%.

The Fed is set to update key forecasts on the economy and monetary policy at its March 19-20 policy meeting.

In his speech, Williams said inflation has "declined significantly" over the past year and a half amid "broad-based" retreats in the components that make up inflation measurements.

But he added, "we still have a ways to go on the journey to sustained 2% inflation.
"Williams said he sees inflation ebbing to between 2% to 2.25% this year and to 2% next year.
Overall inflation pressures measured by the personal consumption expenditures price index were up by 2.6% in December from the same month a year earlier.

Noting the unexpected strength of recent consumer level inflation data, Williams said there are likely to be "bumps along the way" back to 2%.

Williams also said he expects economic growth to slow this year to around 1.5% and for the current 3.7% unemployment rate to rise to around 4%. He said that while risks to the outlook remain, the economy has nevertheless become more balanced.

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Fed’s Williams Says Still ‘Ways to Go’ to Reach 2% Inflation

New York chief says Fed can likely cut rates ‘later this year’
Says three rate cuts in 2024 is ‘reasonable starting point’

Feb 28, 2024

"We still have a ways to go on this journey to get it back to a sustained 2% inflation," Federal Reserve Bank of New York President John Williams says during remarks at the Long Island Association Regional Economic Briefing in Garden City, NY.

By Alex Harris

February 28, 2024 at 9:45 AM PST

Updated on

February 28, 2024 at 11:13 AM PST

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In Europe, the February Economic Confidence index fell to 95.4 from 96.1 and that was below a hoped for rise to 96.6. Weakness was seen again in manufacturing but also services, retail and construction. The only component that was higher m/o/m was consumer confidence which rose by .6 pts but after falling by 1 pt in the month before.

At best, there is no growth coming from the Eurozone and the euro is lower in response with bond yields slightly lower and stocks mixed. We know notwithstanding the economic challenges, stocks there have performed pretty well.

Here was a comment from ECB Governing Council member Peter Kazimir today:

"There is no reason to rush a rate cut. June would be my preferred date, April would surprise me and March is a no go."