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Nick Timiraos, chief economics correspondent at Wall Street Journal, reports that New York Federal Reserve President John Williams expressed strong support for last week’s policy decision and reiterated his previously outlined reaction function. Williams expects inflation to decline, but emphasized that it would be entirely appropriate to increase interest rates if inflation does not fall as anticipated.
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Earlier this year, Williams indicated that Federal Reserve policy would likely remain on hold unless monthly core inflation moved higher. In a separate report, Nick Timiraos highlighted how Kevin Warsh initiated five Fed task forces to review economic analysis. Both comments come amid ongoing scrutiny of the central bank's policy approach.