Bloomberg Talks New York Fed President John Williams Talks Anchoring Inflation Expectations
May 9, 2025
John Williams, the President of the New York Fed, dives into the fundamental role of anchoring inflation expectations in central banking. He emphasizes the importance of maintaining public confidence in achieving a 2% inflation target. The conversation also addresses the current U.S. economic climate, touching on low unemployment and the impacts of trade policy uncertainties. Williams further highlights the significance of central bank independence and advocates for transparency to foster public understanding of monetary policy's role in everyday life.
AI Snips
Chapters
Transcript
Episode notes
Importance of Anchored Inflation Expectations
- Anchored inflation expectations are crucial for price and economic stability.
- Public confidence that inflation will return to 2% strengthens Fed's dual mandate achievement.
Patience Amid Trade Policy Uncertainty
- Consider various scenarios to assess trade policy impacts before policy moves.
- Collect data carefully and avoid premature actions amid uncertainties.
Data-Driven Policy Decision Process
- Fed's policy decisions rely on data about employment, inflation, and economic risks.
- They assess real impacts of tariffs and business responses before acting.