New York Fed President signals further increases

New York Fed President John Williams said the Fed needs to raise interest rates further to cool inflation. "Inflation remains high and there are signs that supply-demand imbalances continue. It is clear that monetary policy has a long way to go to sustainably bring inflation to our 2 percent target," Williams said at an event held by the Fixed Income Analysts Association in New York. "Bringing inflation down is likely to require below-trend growth for a period of time and some easing in labor market conditions," Williams said. "Restoring price stability is essential for maximum employment and stable prices in the long term. It is very important that we stay on course until we complete our work." Williams, who stated that they see signs that inflation pressures are starting to slow, emphasized that he expects inflation to fall to 3 percent this year. Williams, who expects the U.S. economy to grow by 1 percent this year, predicted that the unemployment rate will rise to 4.5 percent.