Federal Reserve Bank of New York President John Williams said the US economy remains remarkably resilient, with economic growth strengthening and the labour market continuing to show stability. He described current conditions as a period when policymakers should gather more information before making further monetary policy decisions, suggesting that the Federal Reserve does not need to rush into its next interest-rate move.
Williams noted that wage growth remains consistent with the Fed’s 2% inflation target, while longer-term inflation expectations remain well anchored. He also said energy-related price increases are passing through to inflation as expected, suggesting that policymakers are closely monitoring the impact of higher energy costs on consumer prices.
On trade policy, Williams indicated that most of the inflationary effects from previously introduced tariffs have already worked their way through the economy and are now largely behind the US. However, he acknowledged that the country continues to face unusual shocks affecting both demand and supply, creating uncertainty for the economic outlook.
Despite these challenges, Williams described the US labour market as remarkably stable and solid, while highlighting stronger economic growth and the economy’s ability to withstand various pressures.
