8/30/2022, 5:22 PM (Source: TeleTrader)
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Interest rate should be above inflation rate - Fed's Williams

Federal Reserve Bank of New York President John Williams said on Tuesday that he projects the United States inflation rate at 2.5% to 3% at the end of 2023, and noted that the federal funds rate should be higher than that level.

The real interest rates, which are adjusted for inflation, should be above zero, he told
The Wall Street Journal in an interview. The Fed's terminal rate in the ongoing rate-hiking process will depend on data, including inflation and jobs reports, Williams confirmed.

The central bank's policy is not yet restrictive, he added, emphasizing that the Fed will keep it restrictive for some time after it first reaches that point and that any rate cuts should not be expected next year.

Baha Breaking News (BBN) / MS