U.S. Federal Reserve member Williams: High interest rates are still necessary!

John Williams, a member of the Federal Reserve, confirmed that the current restrictive monetary policy is still "perfectly appropriate," as inflation rates remain above the target level. He explained that the current interest rate aligns with a "strong" labor market, reflecting the resilience of the U.S. economy despite the challenges it faces.

Williams noted that the U.S. economy is facing a state of uncertainty, both economically and politically, which necessitates careful monitoring of inflation and financial market developments. He also predicted that economic growth will slow in the upcoming period, attributing this partially to a decrease in immigration rates, a factor that could affect the labor market and overall demand in the economy.

He added that the Federal Reserve will continue to closely monitor economic data to ensure price stability and promote sustainable growth, emphasizing the need for a flexible monetary policy that responds to potential economic changes.

It is worth mentioning that the Federal Open Market Committee decided at its last meeting to keep interest rates unchanged, remaining at the upper limit of 4.50%, which was in line with market expectations, in a move aimed at curbing inflation while maintaining economic stability.

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