A senior Federal Reserve official said the US economy was not yet ready for the central bank to start pulling back its hefty monetary support, even though the outlook had become rosier.
The comments from John Williams, the president of the Federal Reserve Bank of New York, were delivered on Monday amid high sensitivity in financial markets to Fed policy. Economic projections by central bank officials last week signalled they expect to increase interest rates in 2023, a year earlier than previously indicated.
Williams said the economy was “getting better all the time”, in some of his most bullish remarks since the pandemic started. But he insisted the Fed would stick to the terms of its monetary policy framework, introduced last August, which sets a high bar for tightening policy.
“It’s clear that the economy is improving at a rapid rate, and the medium-term outlook is very good.
“But the data and…