Free Trial

MNI BRIEF: Fed's Williams Says Price Expectations Are Stable

(MNI) WASHINGTON

New York Fed President John Williams said Friday inflation expectations have been remarkably stable despite the sharp rise in inflation, but the central bank will have to move policy to reinforce those expectations.

"We are watching inflation expectations and other indicators very closely given the large movements in inflation," he told a BIS conference. "Despite the very high inflation we are seeing, longer-term and medium-term (expectations), whether from markets or from surveys, have stayed remarkably stable," he said.

"I would reiterate that policy actions have to reinforce that equilibrium of low and stable inflation and brining inflation back to the target level," he added. Fed staffers and others have told MNI that inflation expectations are at a rising risk of unmooring.

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.