New York Federal Reserve Bank president John Williams said on Thursday that the Fed has made considerable progress on bringing inflation down to the 2% target and restoring balance in labour market but warned that the outlook is uncertain and the policymakers must be data-dependent.
The official also stressed that the overarching objective of monetary policy now is to properly balance restoring price stability and maintaining maximum employment.
"We have not seen the total alignment of our dual mandate quite yet," he noted, adding that he will remain focused on the data, the economic outlook, and the risks as he evaluates the appropriate path for monetary policy to best achieve the Fed's goals.
Williams also revealed that he expects GDP growth to be about 2 per cent in 2024, the unemployment rate to peak at 4 per cent this year and move gradually down to its longer-run level of 3.75 per cent thereafter, and inflation to continue its gradual return to 2 per cent, although there will likely be bumps along the way.