Fed's Williams Sees US Economy Approaching Equilibrium

Federal Reserve Bank of New York President John C. Williams recently described the US economy as nearing equilibrium in a speech delivered to the Queens Chamber of Commerce.

Williams reiterated the Fed's commitment to guiding inflation to its 2% target while sustaining strong employment levels. "Inflation that was once unacceptably high is now close to our goal, and a labor market that was exceptionally tight is in balance," Williams said.

Moreover, he expects the Fed to adjust its policy rates toward a neutral stance gradually. While emphasizing that decisions remain data-driven, he projected GDP growth of 2.5% for 2024 and a steady unemployment rate between 4% and 4.25%.