HOT INFLATION
Powell Says New Inflation Data Show Fed Has More Work to Do
Powell Says New Inflation Data Show Fed Has More Work to Do
US inflation fight to take time in 'highly uncertain' environment: Fed official
The US Federal Reserve is in a strong position to weather the "highly
uncertain" economic outlook, but its inflation fight will take time to
win, a senior US central bank official said Tuesday.
"As we enter
2025, the economy is in a good place," New York Fed President John
Williams told a conference in New York, according to prepared remarks.
"Growth has remained solid, supported by robust consumer spending."
"From
where we are now, a number of signs indicate that inflation will
continue to move toward our two percent longer-run goal," added
Williams, a permanent voting member of the US central bank's
rate-setting committee, referring to the Fed's long-term inflation
target. . .
Williams warned that, despite the strong fundamentals, "the economic
outlook remains highly uncertain, particularly around potential fiscal,
trade, immigration, and regulatory policies," a passing reference to
some of US President Donald Trump's policies.
- Since taking office last month, Trump has threatened to impose tariffs on US allies and top trading partners including Mexico, Canada, and the European Union, and imposed a sweeping 10 percent duty on goods from China -- the world's second-largest economy.
He has also said he wants to carry out
the largest program of mass deportation of illegal immigrants in
American history, something many economists have said could hurt growth.
People
in Trump's orbit insist that, properly implemented, any negative impact
from his tariff and immigration plans should be more than offset by a
deregulation and tax-cutting agenda, which they see as pro-growth and
anti-inflation.
The advance was broad, including higher prices for prescription drugs, car insurance and airfares.
Markets Wrap
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Traders See Just One 2025 Fed Rate Cut After Hot Inflation
Data
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