Fed's Williams: It is too early to assess the economic impact of tighter credit

Federal Reserve Bank of New York President John Williams said Wednesday that inflation is still at problematic levels and the US central bank will act to lower it, in comments that noted recent stress in the banking sector will likely weigh on economic activity.

“Inflation is still too high, and we will use our monetary policy tools to restore price stability,” Williams said in prepared remarks for delivery before a gathering held by the Money Marketeers of New York University.

Key comments

• I am seeing signs of cooling in a still-strong job market.
• I expect a gradual rise in the unemployment rate to 4%-4.5% over the following year.