New York Federal Reserve Bank president John Williams acknowledged on Friday that demand has cooled amid restrictive monetary policy and inflation expectations have come down quite a bit.
The official, however, added that, in his view, the neutral rate is still quite low, noting that the neutral state of interest rates has not risen much since the COVID pandemic.
The boss of the New York Fed also stated that the Fed, which is responsible for achieving price stability, is focused on its mission and does not consider politics in deliberations.