“This is welcome progress after the toughest period for the economy in living memory and a winter when the pandemic was particularly severe, and the economy suffered as a result,” New York Fed President John Williams said in a speech.
He warned against the tendency to “overreact” to price spikes caused by the unique circumstances of the recovering economy this year, while predicting inflation would return to the central bank’s two percent target in 2022.
“While I am optimistic that the economy is now headed in the right direction, we still have a long way to go to achieve a robust and full economic recovery,” Williams said in a speech to be delivered to the Women in Housing and Finance annual conference, noting stronger employment growth would be needed to make the bounceback complete.
