ISTANBUL
The head of the US Federal Reserve Bank of New York said Thursday he expects inflation would be “moderating” in the second half of 2024.
“Inflation has declined significantly since mid-2022,” John Williams said at the Economic Club of New York. “This drop has been broad-based, with inflation lower in all major categories—food, energy, goods, and services.”
Consumer inflation in the US annually rose 3.4% in April, and monthly increased 0.3%, as both figures slightly slowed from March’s gains of 3.5% and 0.4%, respectively.
The latest annual figure is also a sharp decline from the 9.1% year-on-year gain recorded in July 2022, which was the highest in more than 40 years.
“Even with this good news, inflation in the United States remains too high, and in recent months there has been a lack of further progress toward our 2% goal,” said Williams.
“Extracting the signal from the noise when it comes to inflation readings is especially challenging now, since the economy is still feeling the aftershocks of the supply chain issues and high inflation following the pandemic and the war in Ukraine,” he added.
The New York Fed president said he expects inflation to resume moderating in the second half of this year with the American economy “coming into better balance over time and the disinflation taking place in other economies reducing global inflationary pressures.”
