Williams warns about supply shocks
New York Fed President John Williams said the central bank cannot ignore supply shocks if they have a lasting impact on prices.
Williams noted that the key issue for monetary policy is assessing how supply shocks affect the economic outlook and risks to the inflation target.
Williams said the US labor market is broadly balanced and is not adding to inflationary pressures. He also stated that the inflationary effects of tariffs have largely passed, while the impact of artificial intelligence on productivity has yet to become visible.
Comments