New York Fed President Williams Statement on Supply Shocks
New York Fed President John Williams stated that supply shocks with the potential to have a lasting impact on prices cannot be ignored by the central bank.
New York Fed President John Williams stated in a speech at an event in Oxford that supply shocks creating a lasting impact on prices cannot be ignored by central banks.
Supply Shocks and Monetary Policy
New York Fed President John Williams stated that the central bank cannot ignore supply shocks if they create a lasting impact on prices. Williams made the remarks at an event in Oxford, United Kingdom.
The Approach of Looking Past Shocks
The official emphasized that when it comes to such supply shocks, the issue is not to ignore them, but rather to ensure within the broader context of the economy that these shocks do not become permanent.
Meaning of the Term 'Looking Past'
Williams conveyed that using the phrase "looking past" shocks is a useful shortcut but carries the risk of being misunderstood, noting that the real objective is to assess the risks.
Labor Market and Other Factors
Williams stated that the labor market is largely in balance and is not increasing inflationary pressures. It was pointed out that the effects of tariffs on inflation are behind us.
Artificial Intelligence and Productivity
New York Fed President John Williams stated that the potential impacts of artificial intelligence on productivity have not yet been fully seen.