May 22, 2019
NEW YORK (Reuters) – U.S. interest rates are in the right place given a strong economy and “essentially nonexistent” inflation pressures, a top Federal Reserve policymaker said on Wednesday.
New York Fed President John Williams said at a press briefing that some risks to global growth have receded and domestic drivers of the U.S. economy are strong, likely putting growth above 2% and its long-run potential this year.
Rates, meanwhile, of currently between 2.25-2.50% are right about at a “neutral” level that neither eases the economy nor restricts it, and he sees limited argument for changing those borrowing costs.
Williams is vice-chairman and a permanent voting member of the Fed’s rate-setting committee.
(Reporting by Trevor Hunnicutt; Editing by Chizu Nomiyama)