By Michael S. Derby
April 7 (Reuters) – Federal Reserve Bank of New York President John Williams said Tuesday the Middle East war energy shock will drive up overall inflation over the course of this year, while reiterating monetary policy is in the right place to deal with what happens in the economy.
The war impact “will directly go into headline inflation because energy prices are an important component of that,” Williams said in an interview on Bloomberg’s television channel. “I expect headline inflation to actually be elevated, you know, in the middle of this year” and come in at around 2.75% for the year, he added.
(Reporting by Michael S. Derby; Editing by Chizu Nomiyama)
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