John C Williams: The right tools for our time Remarks by Mr John C Williams, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the International Economic Symposium co-hosted by the Deutsche Bundesbank and NABE, Eltville, 10 May 2022. ***  As prepared for delivery Good afternoon. I'm so pleased to be here with you today. We've waited a long time to gather in person. And I think we can all agree that meeting in this charming location was worth the wait. For most visitors, Eltville is renowned for its wine and roses. But for economists, it's a place to convene for weighty discussions on monetary policy. Given the events happening around the world today, there is much to discuss. We are meeting at a time of significant economic challenges and uncertainties. Inflation has reached levels not seen in decades, both in the United States and in many other countries. And recent events-including the war in Ukraine, lockdowns in China, and other supply disruptions related to the ongoing Covid-19 pandemic-are exacerbating near-term inflationary pressures and uncertainty about the global economic outlook. The challenge for monetary policy today is clear: to bring inflation down while maintaining a strong economy. This, of course, is at the heart of the Federal Reserve's dual mandate of price stability and maximum employment. Although the task is difficult, it is not insurmountable. We have the tools to return balance to the economy and restore price stability, and we are committed to using them.
I expect the labor market and economy to continue to show strength and resilience. For 2022, I expect GDP growth to be around 2 percent and the unemployment rate to remain around its current low level. Conclusion Reducing inflation to our longer-run goal while keeping the labor market strong is the challenge of our time. The ongoing pandemic and war in Ukraine bring a tremendous amount of complexity and uncertainty. We will need to be data dependent and adjust  3/4  BIS - Central bankers' speeches  our policy actions as circumstances warrant. We have the right tools, and we will use them to meet this challenge. 1 Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC  statement, May 4, 2022. 2 Board of Governors of the Federal Reserve System, Plans for Reducing the Size of  the Federal Reserve's Balance Sheet, May 4, 2022. 3 Board of Governors of the Federal Reserve System, Principles for Reducing the Size  of the Federal Reserve's Balance Sheet, January 26, 2022. 4/4  BIS - Central bankers' speeches