Inflation expectations risk continuing downward trend – John Williams

Federal Reserve Bank of New York president John Williams said he expected inflation expectations would continue to fall if policy-makers allowed inflation to persist at below-target levels.

“If inflation continues to underrun target levels similar to the past six years, the downward trend in inflation expectations will likely continue,” warned Williams in remarks at a Bank of England conference.

The New York Fed’s survey of consumer expectations shows that expectations have slipped almost half