By Tom Fairless
ELTVILLE AM RHEIN, Germany–Federal Reserve Bank of New York President John Williams said the U.S. central bank can achieve a “softish landing” for the country’s economy even as it rapidly increases its key interest rate, although the unemployment rate might rise.
“I do think there is a path forward to achieve a softish landing,” Mr. Williams said Tuesday during a question-and-answer session in Germany organized by Deutsche Bundesbank.
“We could see growth below trend for a while and unemployment moving up somewhat, but not in a very large way,” Mr. Williams said.
“I would not define a soft landing as unemployment at 3.5%. I would define it as maintaining a healthy labor market as inflation is coming down,” he added.
Write to Tom Fairless at firstname.lastname@example.org