Williams Warns of Supply Shock Risks
Fed's Williams Warns of Persistent Supply Shocks
New York Federal Reserve Bank John Williams recently spoke at Oxford University, emphasizing that persistent supply shocks cannot be ignored. He stated that while tariffs and higher energy prices may not lead to sustainable inflation, repeated supply shocks are indeed keeping price pressures high.
In a discussion panel, Williams noted that labor market conditions are not contributing to inflationary pressure. He also expressed his opinion on tariffs, stating that they generally do not produce sustained inflation.
The Fed's focus is on ensuring that supply shocks do not become entrenched. Williams also commented on the impact of artificial intelligence (AI) on productivity, stating that he has not seen any significant effects yet.