- US economy remarkably resilient
- Growth has strengthened
- US facing unusual supply and demand shocks
- Remarkably stable and solid labour market
- We’ve seen tariffs effect work way through, mostly behind us
- Energy passing through to inflation as expected
- Inflation expectations well anchored
- Wage growth consistent with 2% goal
- This is appropriate time to gather more info
New York Fed President John Williams highlighted the resilience of the US economy while signalling that the Federal Reserve can afford to take time to assess incoming data before making further policy decisions.
Williams said economic growth has strengthened, describing the US economy as remarkably resilient despite facing unusual demand and supply-side shocks. He also characterised the labour market as remarkably stable and solid, suggesting that employment conditions remain broadly supportive of the economic outlook.
On inflation, Williams noted that the impact of tariffs has largely worked its way through the economy and is now mostly behind us. Meanwhile, energy costs are passing through to inflation broadly as expected. He added that longer-term inflation expectations remain well anchored and wage growth is consistent with the Fed’s 2% inflation target.
Williams is relatively comfortable with the current economic backdrop and doesn’t see the need to rush on interest rates.
This article was written by Giuseppe Dellamotta at investinglive.com.