Fed's Williams Addresses Uncertainty in Bank Crisis Impacts and Policy Outlook.

New York Fed President John Williams said that the magnitude and duration of the impact of the recent bank crisis on credit conditions is still uncertain. He added that the Fed's policy decisions will be driven by incoming economic data, particularly on inflation and the job market. Williams expects inflation to decline to around 3.25% this year, before moving closer to the Fed’s goal in the next two years. He also expects the economy to grow modestly this year and for growth to pick up somewhat next year, though he expects to see the unemployment rate rise to 4.5% over the next year, up from 3.6% as of February.