Robert Kim
Federal Reserve Bank of New York President John Williams on Friday underscored the importance of the U.S. central bank's 2% inflation target, calling the Fed's preferred policy tool an essential element of achieving price stability. and economic prosperity.
your comments came at a monetary policy conference at Stanford University's Hoover Institution, days after the U.S. Federal Reserve held its short-term borrowing costs steady, citing “a lack of further progress” toward its inflation target of 2%.
“Theory and experience have also demonstrated the importance of transparency and clear communication, including establishing an explicit long-term numerical inflation target and taking appropriate measures to support the achievement of that target.” Reuters reported, quoting Williams.
“These are critical to anchoring inflation expectations, which, in turn, helps keep inflation on target,” he added.
With the Federal Reserve's decision to reduce the pace of quantitative tightening at its latest interest rate policy meeting, the benchmark S&P 500 Index (SP500) closed up 0.6% this week, marking its second advance consecutive weekly. Meanwhile, the blue-chip Dow (dji) added +1.1%, and the tech-heavy Nasdaq Composite (COMP:IND) rose +1.4%.
