John Williams, the President of the Federal Reserve Bank of New York, has indicated a significant shift in the US central bank’s monetary policy, which could bring an end to its four-decade-long aggressive tightening journey. The change was announced on Friday, despite Williams having to cancel his Long Island visit due to a family emergency.
Williams emphasized that high interest rates would continue to persist in an effort to bring down the current unacceptably high inflation rate to the 2% target. This move marks a crucial transition in the central bank’s approach towards managing inflation and interest rates.
His comments underline the necessity for further control as inflation remains too high despite recent moderation. This significant announcement signals a new era in the central bank’s strategy, highlighting its focus on inflation control. The shift in policy is expected to have broad implications for the economy and financial markets in the coming months.
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