NY Fed’s Williams says inflation increases becoming broader based

FILE PHOTO: John Williams, CEO of the Federal Reserve Bank of New York, speaks at an event in New York

(Reuters) – Inflation in the United States is becoming more broad based and expectations for future price increases are rising, a trend policymakers will be watching closely, New York Federal Reserve Bank President John Williams said on Thursday.

“We definitely have seen a pickup in underlying inflation in the U.S. that we’ll be studying carefully,” Williams said during a virtual panel. A rise in short-run and long-run inflation expectations are a positive development, but officials would not want long-run inflation expectations to move up significantly more, Williams said.

(Reporting by Jonnelle Marte; Editing by Chizu Nomiyama)