Move up in inflation expectations not 'flashing a warning sign' - NY Fed's Williams
SPY•Williams says recent jump is being watched but is not a warning sign
NEW YORK, July 15 (Reuters) - A recent jump in medium-term inflation expectations was surprising but is not sending a significant warning that consumers outlooks for price pressures are becoming unanchored, New York Federal Reserve President John Williams said on Wednesday.
"It's definitely something I am watching," Williams told reporters after an event in New York, referring to the bank's recent survey of consumers showing a leg up in inflation expectations on the three-year horizon.
The survey showed households in June saw inflation running at 3.3% over that time, up from 3.1% the prior month and the highest since June 2022.
"The movement so far has been relatively modest," he said.
"I don't think it's flashing a warning sign, but it's something I'll watch carefully because we don't want medium-term inflation expectations moving that much."
