A top Federal Reserve official said changes in lending conditions and their potential effects on economic activity and hiring would be a top focus as officials determine whether they have raised rates enough to bring inflation down.
In a speech Tuesday, New York Fed President John Williams cited the lag between when the Fed raises interest rates and when those actions slow down the economy in cautioning that it will take time for the central bank’s rapid rate increases to slow down economic activity to combat high inflation.
A top Federal Reserve official said changes in lending conditions and their potential effects on economic activity and hiring would be a top focus as officials determine whether they have raised rates enough to bring inflation down.
In a speech Tuesday, New York Fed President John Williams cited the lag between when the Fed raises interest rates and when those actions slow down the economy in cautioning that it will take time for the central bank’s rapid rate increases to slow down economic activity to combat high inflation.