Williams, president of the Federal Reserve Bank of New York.

(file photo)

[Financial Channel/Comprehensive Report] John Williams, president of the New York branch of the US Federal Reserve, warned on Tuesday (9th) that it will take some time before inflation returns to an acceptable level before raising interest rates in the economy. play a role, if inflation does not fall, may also raise interest rates.

"CNBC" reported that although Williams did not give his forecast for the Fed's policy direction, he said that it would take two years for inflation to return to the Fed's 2% target. The Fed can always raise rates as an option.

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The Federal Reserve announced last Wednesday (3rd) that it would raise interest rates by 1 yard, raising the benchmark interest rate to a range of 5% to 5.25%. Various factors were carried out again, and a small paragraph was deleted compared with the previous statement, which indicated that further interest rate hikes were appropriate.

Williams said: "First of all, we haven't said that we have finished raising interest rates." He emphasized that we will make sure that we can achieve our goals, and we will evaluate whatever is happening in the economy and make decisions based on these data. Decide.

Williams said he did not see any case for a rate cut this year in his base case, adding that further rate hikes were possible if economic data did not allow it.

The current problems in the banking industry and their impact also affect Williams' policy outlook.

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