MNI BRIEF:Price Expectations Consistent With Fed Goal-Williams
New York Fed President writes article for BIS publication.
Longer-run U.S. inflation expectations have stayed remarkably stable at levels consistent with the Federal Reserve's 2% goal, notwithstanding decades-high inflation over the last few years, New York Fed President John Williams said Tuesday in a new BIS publication.
"Recent news about the long-run anchoring of inflation expectations in the United States is mostly reassuring," he said in one chapter. Still, Williams said there is evidence of increased uncertainty about longer-run inflation.
"But this does not appear to be due to unmoored longer-run expectations, given that the measures do not suggest that uncertainty is increasing linearly with the forecast horizon," concluded Williams, the vice chair of the FOMC. "On the contrary, for many measures, uncertainty about longer-run inflation has increased by about the same degree or less than shorter-horizon measures."