On Tuesday, July 11, The Financial Times published the transcript of an interview with New York Fed President John Williams. In it, he discusses inflation, the job market and his economic outlook.
He said:
“I don’t have a recession in my forecast. I’m quite slow growing.
“[S]some of the monetary tightening and some effects of credit tightening will weigh on demand in 2024.”
In the interview, President Williams said he expects slower economic growth in the second half of the year as well as the first half of 2024. He indicated that monetary policy is not yet tight enough to bring inflation to 2 percent, adding, that Fed policymakers want to reach that goal in a few years.
He said he expected unemployment to rise to around 4% by the end of the year and reach 4.5% by the end of next year.
He added that he forecast personal consumption expenditure inflation to fall to around 3 percent this year and reach 2.5 percent in 2024.
Read the full transcript (© The Financial Times Limited 2023).
Ellen Simon is a corporate communications specialist in the communications and outreach group at the New York Federal Reserve.
The views expressed in this article are those of the contributing authors and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System.