Fed's Williams sees rates remaining restrictive across 2023

A top US central bank official said that he expected interest rates to rise "somewhat above" 3.5% and to remain at that level throughout 2023.

In remarks with the Wall Street Journal, the head of the Federal Reserve Bank of New York, John Williams, reportedly said that such a level would be "restrictive" and able to slow demand.

"It is going to take some time before I would expect to see any adjustment to rates downward," Williams said.

Williams added that he saw "some goods signs" that inflation but was reportedly quick to add that it remained too high, further pointing out that there were "crosscurrents" in the economic data with the "real news" being in the labour market.