MNI BRIEF: Fed's Williams - Not Seeing Clear Credit Tightening

New York Fed President John Williams said Monday he is watching closely to see if there is a shift from the tightening of credit conditions after last month's banking turmoil but he is not seeing a clear sign yet, while suggesting there is more to be done to tamp down inflation.

"We haven't seen a clear sign yet of credit conditions tightening. We don't know how big it will be. So we have to always go back to let's monitor the data and understand what's happening and what is the economic outlook," he said in Q&A at a New York University event.

(See: MNI INTERVIEW: Fed Not Done Hiking Despite Bank Pain-Cecchetti)

Fed officials have largely continued to signal a tightening bias while also emphasizing uncertainty around the impact of credit conditions on the economic and policy outlook. Williams said Monday he anticipates inflation this year around 3.75% and the Fed achieving 2% inflation by 2025. The New York Fed chief said he expects to see the unemployment rate rising gradually to 4% to 4.5%.