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Fed’s John Williams says it will ‘take time’ before inflation gets back to 2% target


John Williams, Chief Executive Officer of the Federal Reserve Bank of New York, speaks at an event in New York, November 6, 2019.Carlo Allegri | ReutersNEW YORK — New York Federal Reserve President John Williams on Tuesday cautioned that interest rate increases will take a while to work their way through the economy before inflation returns to an acceptable level.The central bank official gave no forecast for where he sees policy headed but said he doesn’t expect inflation to return to the Fed’s 2% goal until the next two years.related investing news He added that unemployment is likely to rise to a 4%-4.5% range, from its current 54-year low of 3.4%.”Because of the lag between policy actions and their effects, it will take time for the [Federal Open Market Committee’s] actions to restore balance to the economy and return inflation to our 2% target,” Williams said in prepared remarks at the Economic Club of New York.Williams spoke six days after the FOMC voted to raise its benchmark rate another quarter percentage point to a target range of 5%-5.25%. In its post-meeting statement, the committee hinted it could pause rate hikes, though it said officials will be taking a variety of factors into account when determining how to proceed.The committee removed a key phrase from the statement that had indicated additional rate hikes would be appropriate. Williams said that decision is now a matter of what the incoming …

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