Chairman of the New York Federal Reserve: Overall monetary policy is within a suitable range, there is no reason to raise interest rates or cut interest rates in the short term

On May 15, New York Fed President John Williams delivered a public speech on Thursday, making it clear against the background of the huge uncertainty brought by the war in the Middle East that the Fed does not need to consider adjusting interest rate policy at the moment. The overall monetary policy is in a suitable range, and there is no reason to raise interest rates or cut interest rates in the short term. This time, Williams expressed his views at the National Association of Business Economists event, which generally continued the policy tone that had been consistent in the past few days and remained stable. He emphasized that stabilizing inflation expectations is crucial. Although short-term inflation expectations are normal to rise, long-term inflation expectations have always remained stable, which is crucial to overall price stability. In terms of the impact of tariffs, Williams believes that most of the impact of tariffs on inflation has been released, and only need to continue to track the evolution of overall price pressure in the future. Williams analysis pointed out that the current inflation expectations are generally under control, the labor market has not further pushed up prices, and the market has not experienced abnormal second-round transmission effects and sustained inflation inertia, but close observation still needs to be maintained and monitoring cannot be relaxed. rhythm. Regarding the continued strength of U.S. stocks, Williams said it was not surprising considering the "optimism" level of people about the economic outlook. He pointed out that the market has optimistic expectations for future productivity improvement, and technological advances such as artificial intelligence are important supports. In addition, he gave a positive evaluation of the Federal Reserve's current liquidity management system with sufficient reserves and believed that it was operating in good condition.