Williams - Still Ways To Go To Sustained 2% Inflation

NY Fed’s Williams (voter) doesn’t explicitly comment on the rate outlook, having last week said he sees rate cuts likely later this year. Instead, he notes the journey on the path to 2% inflation is not over yet with likely further bumps along the way.

• "While we’ve seen great progress toward achieving our goals, the journey is not yet over, and I am very focused on making sure we complete this mission successfully."
• “I expect inflation to continue its return journey to 2%, although there will likely be bumps along the way, as we saw in the most recent CPI data.”
• “The MCT’s return trajectory is a mirror image of its rise. But, we still have a ways to go on the journey to sustained 2 percent inflation.”
• “I expect PCE inflation to be around 2 to 2.25% this year and 2% next year.”
• “The risks to this forecast are two-sided. Inflation may surprise on the upside, or consumer strength—a major driver of the robust growth we saw in 2023—may fade more quickly than I anticipate.”