Fed’s Williams Says Inflation on Track to 2% But Will Take Time

Federal Reserve Bank of New York President John Williams said he anticipates inflation will continue to slow toward the central bank’s 2% goal, but warned policy-related uncertainty clouds the economic outlook.

“The modestly restrictive stance of policy should support the return to 2% inflation while sustaining solid economic growth and labor market conditions,” Williams said Tuesday in remarks prepared for an event at Pace University in New York. “But it’s important to note that the economic outlook remains highly uncertain, particularly around potential fiscal, trade, immigration and regulatory policies.”