New York Federal Reserve Bank President John Williams predicted that the US central bank would raise interest rates enough to restrain growth and reduce inflation, then would need to keep them at elevated levels until the end of 2023.
According to Arabiya Net, he added that the Federal Reserve will likely need to raise the main interest rate above 3.5% to put downward pressures on inflation and achieve a better balance between demand and supply.
Based on what I see in the inflation data and what I see in the economy, it will take some time before I expect any downward adjustments to interest rates, Williams told The Wall Street Journal.
He also said that inflation is likely to be in a range of between 2.5% and 3.0% next year, which indicates that the federal funds rate in a range of 3.0% and 3.5% will not dampen or stimulate the economy.
