The President of the New York Fed assessed the uncertain outlook of the economy.

John Williams, President and CEO of the New York Federal Reserve, recently spoke at the Macroeconomic Caribbean Conference held in Nassau, Bahamas. In his remarks, he addressed the current economic situation, emphasizing the inherent uncertainty of the economy and the role of monetary policy.

Williams indicated that the U.S. economy is entering 2025 on a solid foundation, bolstered by strong job growth and GDP expansion. While unemployment has stabilized, contributing less to inflationary pressures, inflation, which peaked above 7% in 2022, has now declined to around 2.5%. He highlighted the importance of well-anchored inflation expectations during uncertain times and acknowledged the interconnectedness of global economies, underscoring the role of global factors in driving inflation. Despite natural uncertainties in monetary policy, Williams reiterated his commitment to supporting maximum employment and returning inflation to the 2% target.