Fed's Williams: Fed needs to be data dependent, adjust policy actions as circumstances warrant

NY Fed President and influential FOMC member John Williams on Tuesday said that the Fed needs to be data-dependent and adjust its policy actions as the circumstances warrant, report Reuters. The Fed will move expeditiously to bring the Federal Funds target range back to more normal levels this year, he said, echoing Fed Chair Jerome Powell's message in the post-FOMC meeting press conference last week. 

Additional Remarks:

War and the pandemic have brought a tremendous amount of uncertainty and complexity. 

The ongoing pandemic and war in Ukraine are exacerbating near-term inflation pressures and global economic uncertainty. 

"Our actions will cool demand and factors contributing to supply shortages will be resolved."

The Fed's task to return balance and price stability to the US economy is difficult, but not insurmountable. 

"We have a sizzling hot labor market."

Some of the Fed's rebalancing will be accomplished through increases in supply.

"I am resolutely focused on restoring price stability."

"I am confident the Fed has the right tools to achieve our dual mandate goals."

"For 2022, I expect Core PCE inflation to be nearly 4%, then to fall to around 2.5% next year."

"For 2022, I expect GDP growth of around 2% and the unemployment rate to remain around its current low level."