Federal Reserve Bank of New York President John Williams said Tuesday he is upbeat about the future of the U.S. economy, adding that he doesn’t see notable risks going forward when it comes to financial stability.
Mr. Williams did warn, however, that a failure by the broader government to deliver more aid likely would cause the economy to grow more slowly over time.
“The recovery has actually been stronger, more robust than many were expecting,” Mr. Williams said in a virtual appearance. “This ability to somehow keep the economy growing, despite the pandemic, despite the high number of [Covid-19] cases, it makes me optimistic that we’ll be able to continue to see a pretty strong economic recovery for the rest of this year, into next year,” he said.
Mr. Williams also said the unemployment rate, which started the year at 3.6% before rising to 14.7% in April then falling back to 8.4% in August, shows the economy is snapping back. A strong economy and full employment are attainable “in about three-years time,” he said.
Mr. Williams, who also serves as the vice chairman of the rate-setting Federal Open Market Committee, didn’t say what lies ahead for the central bank when it comes to setting monetary policy. But speaking with reporters after his remarks, he said that continued support from the government is important.