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

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.