New York Fed President John Williams sees U.S. GDP growth slowing to about 2% this year, down from just above 3% for 2018.
The moderation isn't necessarily cause for alarm, but rather a "new normal," and meshes with slower growth in the labor force and productivity.
"From the perspective of monetary policy, the overall picture of the economy is about as good as it gets: very low unemployment, sustainable growth, and inflation just about at our 2% goal," he said in remarks at the Economic Club of New York on Wednesday.
Of course there are risks to consider as well, such as geopolitical uncertainty, and Williams stresses the Fed's response will always depend on the data.
"We’ll consider the full range of data, the headline statistics, the market indicators, and we’ll listen to our business contacts on the ground, as we aim to keep the economy on its current course of a strong labor market, sustainable growth, and 2% inflation," he said.
Previously: Fed's Powell notes elevated global uncertainty in Congressional testimony (Feb. 26)
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