"NY Fed Chief Forecasts Bumpy Path to Rate Cuts Amid Economic Data Dependency"

The President of the Federal Reserve Bank of New York discusses the progress made in restoring balance to the economy and bringing inflation down to the 2 percent longer-run goal. The labor market has shown signs of returning to normal, with strong job growth and a low unemployment rate, but job vacancies and wage growth indicate lingering tightness. Inflation has declined significantly over the past year and a half, but remains above the 2 percent target. The Federal Open Market Committee has maintained a restrictive stance on monetary policy, and the economic outlook includes expectations of slowing GDP growth, modestly rising unemployment, and a return journey for inflation to 2 percent. The focus remains on fully restoring price stability in the context of a strong economy and labor market.