Fed's Williams: Don't want to allow inflation expectations anchor to slip

New York's Federal Reserve John Williams explained that the 2% inflation is the foundational target and that price stability is an absolute imperative,

Key notes

We are absolutely committed to getting back to 2% over the next few years.
    
Although goods prices have come down in last several months, there are signs this may not go as quickly as hoped.
    
We have demand that exceeds supply, labor market is extraordinarily strong.
    
Monetary policy must bring demand and supply back into balance.
    
Don't want to allow inflation expectations anchor to slip.