NY Fed: US is still far from achieving its inflation target

John Williams, head of the Federal Reserve in New York, confirmed that the bank has taken great steps in reducing inflation towards the target of 2%, but it is still far from achieving the goal.

He added: We have witnessed significant progress in reducing the inflation rate, but we are still far from reaching the target of 2% on a sustainable basis.

According to the Fed’s preferred measure of inflation, inflation recorded levels of 2.6% on an annual basis in May, down from the peak of 7.1% recorded during the pandemic.

The minutes of the Fed’s latest meeting, which were published last week, also showed that monetary policy makers are more confident that price pressures are easing, although Williams stressed that the Fed will always be guided by the overall economic data it receives and the tasks it receives and will not take anything for granted.