The latest economic data seems to be breaking the Federal Reserve’s way, with cooling of both inflation and the labor market, according to New York Fed President John Williams on Wednesday.
Both... The latest economic data seems to be breaking the Federal Reserve’s way, with cooling of both inflation and the labor market, according to New York Fed President John Williams on Wednesday. In addition, Williams said he expects the unemployment rate to rise to a range of 4%-4.5% over the next year from a tight 3.5% rate in March.
Some economists think the Fed will pause due to tighter credit standards from banks in the wake of the collapse of Silicon Valley Bank. That could lead to a cutback in consumer spending.While there will likely be some tightening in credit conditions, “it is still too early to gauge the magnitude and duration of these effects, and I will be closely monitoring the evolution of credit conditions and their potential effects on the economy,” he added.