Fed's Williams Sees US Economy Near Equilibrium

Federal Reserve Bank of New York President John C. Williams painted a picture of a US economy nearing equilibrium in a recent speech. Williams, speaking at the Queens Chamber of Commerce, emphasized the Fed's dedication to steering inflation towards its 2% target while maintaining robust 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 noted. He anticipates the Fed to gradually adjust its policy rates towards a neutral stance, stressing that decisions will continue to be data-driven.

Williams projected GDP growth of 2.5% for 2024 and a steady unemployment rate between 4% and 4.25%.