Fed’s Williams: Tapering may soon be warranted
Federal Reserve Bank of New York President and Chief Executive Officer (CEO) John C. Williams remarked on Monday that tapering the United States central bank’s bond-buying “may soon be warranted.”
Williams went on to describe the criteria for a hike of interest rates as “still a long way off.” He also expressed his optimism regarding inflation expectations as he does not see “worrying signs” concerning the matter. Still, Williams noted the presence of “temporary [COVID-19] pandemic forces” that are influencing inflation, labeling it as “something to watch closely.”
Williams also projected the country’s economy could grow by between 5.5% and 6.0% this year. Earlier this month, the Federal Reserve predicted the US gross domestic product (GDP) will expand by 5.9% in 2021.
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