John Williams, New York's Federal Reserve President, stressed the urgency of resolving the U.S.'s number one issue of inflation, which he predicted could take a couple of years. Williams said that inflation could remain elevated until 2025, but he anticipates that consumer prices will decline in 2023 as supply chain disruptions continue to fade.
The latest reading showed the PCE inflation rate, the one we're focused on, is at 6.0% and we want it to be 2%, Williams told FOX Business's Ed Lawrence in an exclusive interview. I hope that we will reach our 2% inflation goal by the year 2025. As supply chain issues improve, I expect to see a decline in inflation next year. Critics argue that the Biden administrations careless government spending is the key to the country's sky-high inflation and that excessive spending is not a primary part of inflation as a whole, according to the New York Federal Reserve President. It is an issue of global factors that affect commodity prices and demand. Supply chain issues are getting better. Demand is beyond supply, and there is a fundamental fact that demand is exceeding supply, according to Williams.
Our job is to focus on the economic outlook, given the strength in the economy and the inflation outlook. What do we do to bring inflation back to 2%? That's what we're going to do this year, and that's what we need to do in order to bring inflation under control and bring it back down, Williams concluded.
With inflation still high, economists are increasingly convinced that the Fed will trigger a recession in 2024.