New York Federal Reserve John Williams says that the central bank has to be data-dependent and transparent about its thinking.
Williams says officials have to be open to changing course when the data suggests that's what is needed.
Key comments
Williams says supply chain issues and labour shortages have lasted much longer than expected
Williams says there is continued strong demand for goods and housing.
Williams says inflation is much higher than the Fed expected.
Williams says he expects inflation to come down this year but still be well above Fed's 2% goal.
Williams says Fed is committed to taking actions needed to bring inflation back to 2%.
Williams says the uncertainty around the economic outlook is great and the situation in Ukraine adds to that.
The first direct effects of the Ukraine crisis are higher energy prices factoring into higher inflation.
Williams says a negative supply shock to oil can have a hit on consumers' ability to spend.
Williams says people still have a lot of savings built up to support spending.
Williams says the economy is coming into this with a lot of forwarding momentum.
Williams says longer-term inflation expectations are not moving that much.
Williams says the Fed has to take action to get inflation back down to the 2% goal and make sure inflation expectations stay anchored.