Federal Reserve's Williams: Current Economy Not Experiencing Stagflation, Balance Sheet Reduction Slowdown is Natural Next Step

BlockBeats News, April 1st, San Francisco Federal Reserve President Williams stated that there is indeed a risk of inflation running higher than the Fed's projection. I predict that inflation will remain relatively stable this year, but there is an upside risk. I will not predict the likelihood of an economic recession, as the economy is currently very robust supported by a strong job market.

The Fed will not let high inflation "entrench" itself. There is currently no stagflation in the economy. Economic growth is expected to continue but at a slower pace compared to last year.

Long-term inflation expectations have stabilized. The Fed's balance sheet tapering is the natural next step. (FXStreet)