The Fed: Fed’s Williams sees signs of good news on inflation

by | Dec 1, 2022 | Stock Market

Some forward-looking indicators are showing signs that inflation might be turning, said New York Federal Reserve President John Williams, on Thursday. In an interview on the Fox Business Network, Williams would not say that inflation has “peaked.” “I do think we are starting to see some signs on inflation measures that are moving in the right direction,” Williams said.

“Commodity prices have come down. We’re finally see some used-car prices come down. We’re seeing some other indicators on rents. So we’re seeing some forward looking indicators that inflation is turning,” he added. Williams, who always has a vote at the Fed’s interest-rate committee meetings, said it will take “a couple years” to get inflation all the back down to 2%. The Fed’s favorite inflation measure, the personal consumption expenditure price index, was running at a 6% annual pace in November, according to data published Thursday. See: Hot U.S. inflation is cooling, key PCE price gauge shows He said he expects “a pretty significant decline in inflation” in 2023. The Fed’s job is to get demand to moderate so that it is in balance with supply, including in the labor market, Williams said. Tighter …

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