John Williams, president of the Federal Reserve Bank of New York, said on Apr. 7 that while higher energy expenses from the Iran war are adding to overall price pressures, the outlook for U.S. underlying inflation has not changed much.
According to Bloomberg, Williams said in an interview with Bloomberg TV that day that he expects the core inflation rate, excluding food and energy, to rise by about 0.1 to 0.2 percentage point.
Williams said he slightly lowered his forecast for U.S. economic growth this year to 2 to 2.5% from 2.5 to 2.75%. He then said he expects inflation to rise further.
Williams said there is no need to consider changing the Federal Reserve's benchmark interest rate at present. He said, "Monetary policy is in a good position to watch how the Middle East conflict affects the economy," adding, "Monetary policy is exactly where it needs to be right now, and if conditions change, we can respond accordingly."
On the labor market, he said, "The labor market is now much more stable and is by no means weakening."