05/30/2024 – 13:55
New York Federal Reserve (Fed) President John Williams assesses that wage growth in the United States has not yet slowed to a level consistent with the 2% annual inflation target. The director listed this as one of the signs that the job market is still tighter than before the pandemic, alongside the number of job vacancies.
Williams said that these two indicators have not yet shown an improvement in the supply and demand imbalance, as many others have done. However, he stressed that the Fed has made considerable progress in its dual mandate of price stability and maximum employment.
“Analyzing this broader context, the behavior of the economy over the past year provides ample evidence that monetary policy is restrictive in a way that helps us achieve our objectives,” he said, during a speech at an event at the Economic Club of New York today.
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