Fed’s Williams: Expect inflation to rise above 2% this year but likely will be temporary

Dhwani Mehta FXStreet

Inflation is likely to see a temporary rise above 2% this year, New York Fed President John Williams said in an interview with the Wall Street Journal (WSJ).

Additional quotes

“Fed's bond-buying is an important part of monetary policy.”

“It is designed to help the economy recover from the pandemic impact.”

“No signs that bond buying is creating financial sector imbalances.”

“Does not see higher valuations in stocks, the housing market as being a significant risk to financial stability right now.”

“Not going to draw a line on how high inflation could rise to prompt policy change.”

“Fed has the ability to respond in case inflation gets too high a level.”

“Sees need for strong monetary policy support to ensure recovery.”

Market reaction

The latest comments from the Fed policymaker William have little to no impact on the greenback, as the US dollar index keeps its range near 91.40. US data awaited.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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