13.6 C
New York
Thursday, September 28, 2023

Fed’s Williams says slower U.S. growth is a ‘new normal’

Fed's Williams says slower U.S. growth is a 'new normal'Fed’s Williams says slower U.S. growth is a ‘new normal’

NEW YORK (Reuters) – Slower U.S. economic growth is not necessarily “cause for alarm” but instead a “new normal” people should expect, a top Federal Reserve official said on Wednesday, underscoring policymakers’ comfort with rates at current levels.

New York Fed President John Williams (NYSE:) has slightly downgraded forecasts for economic growth to around 2 percent as violent markets late last year constrain consumer and business spending now.

But Williams told the Economic Club of New York that the “as-good-as-it-gets” result would be right on target with the potential growth in the United States, justifying current interest rates, which are at a “neutral” level that neither encourages nor discourages economic activity. Weakening Chinese and European economic growth justify the Fed’s patient stance on rates, he said, largely reiterating earlier comments.

“With a strong labor market, moderate growth, and no sign of any significant inflationary pressures, the baseline outlook is quite favorable,” Williams said in remarks prepared for delivery in New York. “What will the response of the Fed be? My short answer: It depends!”

Williams is a permanent voting member of the Fed’s rate-setting committee and leader of the bank charged with implementing the policy. The committee meets later in the month to chart future policies but markets have all but written out the chance that a rate hike would be in the cards.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles