The director of the American Federal Reserve in New York declared this Thursday that he forecasts “moderate” inflation for the second half of 2024.
“Inflation has fallen significantly since mid-2022,” John Williams told the Economic Club of New York. “This decline was widespread, with lower inflation in all major categories: food, energy, goods and services.”
U.S. consumer inflation rose 3.4% year-over-year in April and 0.3% for the month, both figures slowing slightly from gains of 3.5% and 0.4% recorded respectively in the month of March.
The latest annual figure also represents a sharp decline from the 9.1% year-on-year gain recorded in July 2022, which was the highest in more than 40 years.
“Even with this good news, inflation in the United States remains too high, and in recent months there has been no progress toward our 2% goal,” Williams said.
“Extracting the signal from the noise when it comes to inflation figures is particularly difficult at present, as the economy is still feeling the impact of supply chain problems and high inflation, following the pandemic and the war in Ukraine,” he explained.
The head of the New York Fed said he expects inflation to begin to moderate again in the second half of this year, at a time when the U.S. economy is “reaching greater balance over time and disinflation in courses in other economies that reduce global inflationary pressures.
