'Federal' official: inflation on the way to 2%but it will take some time

New York Reserve Bank, John Williams, said he is expected to continue to delay the central bank’s goal of 2%, but he warned that uncertainty was disturbed by economic expectations. Williams said on Tuesday that in statements prepared for an event at the University of Pace in New York: “The modest restriction position of monetary policy will support a return to the inflation rate of 2%, while maintaining strong economic growth and labor market conditions. The signs of the decline of inflation responsible in the federal indicated that a number of signs indicating that inflation would continue to decline, including the slowdown of wage growth and the expectations of inflation of the firm. However, he warned that the case would “take some time” before the Federal Reserve reached its 2% goal on a sustainable basis. The federal official held the interest rates in January after a percentage of the cuts in the last months of 2024. Earlier Tuesday, Federal Reserve chairman Jerome Powell told legislators that the central bank was not in a hurry to change prices. The head of the Federal Reserve in Cleveland Peth Hamak also talked about patience on Tuesday. She said it was appropriate to hold the interest rates “for some time” while officials were awaiting evidence of low inflation and analyzing the economic consequences of new government policies. January -data will be announced on the inflation scale on Wednesday. Williams said the labor market is still strong. He expected the economy to grow by about 2% in 2025 and 2026, after the adjustment of inflation. Prices are also expected to grow by about 2.5% this year before falling to 2% “in the coming years”. He said, “From where we are now, the economy is in a very good situation.” The official emphasized that the efforts of the Federal Reserve to reduce its $ 6.8 billion public budget “are running smoothly.”