AIAC at NY FED President John Williams’ Address to The Economic Club
For Immediate Release
May 30, 2023 – New York, NY : American Industrial Acquisition Corporation, Avara Pharmaceutical Services, and their invited guests joined the Economic Club of New York in a private reception, lunch, and address by President and Chief Executive Officer of the Federal Reserve Bank of New York, John C. Williams, at the University Club of New York. His address was followed by a conversation with Sara Eisen, Co-Anchor of CNBC's Squawk on the Street.
Please see John Williams' entire address here.
Dr. Williams began his address by reflecting on his four year tenure as Chair of the Economic Club of New York, and the Club's adaptation during the pandemic. He commended the Club's resilience and increased productivity, attributing it to innovative approaches like virtual events and new programs advanced by the club’s management and staff.
Transitioning to a discussion of his role at the New York Fed, Dr. Williams emphasized the institution's dual mandate: maximum employment and price stability. He noted significant progress toward these goals over the past two years, with a strong labor market and a notable decline in inflation. Despite challenges like supply chain disruptions and geopolitical tensions, Dr. Williams expressed optimism about the economy's trajectory.
Regarding inflation, he acknowledged that while it remains above the Fed's 2% target, there have been positive signs of moderation. He cited various measures, such as the Multivariate Core Trend (MCT) inflation measure and consumer expectations surveys, to illustrate the ongoing decline in inflationary pressures. Dr. Williams attributed this moderation to the global context, where other advanced economies have also experienced similar trends.
Dr. Williams discussed the Fed's monetary policy stance, highlighting its role in addressing supply-demand imbalances and supporting the broader economic recovery. He indicated that the Federal Open Market Committee (FOMC) would maintain the present federal funds rate target range and he announced plans to gradually reduce the Federal Reserve Systems’s holdings of Treasury securities and agency debt. Dr. Williams emphasized the need for a nuanced approach to monetary policy, considering both domestic and global economic factors.
In terms of economic outlook, Dr. Williams forecasted moderate GDP growth, a gradual decline in the unemployment rate, and a return to lower inflation levels over the coming years. However, he cautioned about the uncertainty posed by geopolitical events and other external factors, underscoring the Fed's commitment to data-driven policy decisions.
At the conclusion of his formal remarks, Dr. Williams expressed confidence in the Fed's ability to achieve its objectives of price stability and maximum employment. He reaffirmed the institution's dedication to fostering sustained economic prosperity while remaining vigilant in addressing evolving challenges.
During the interview by Sara Eisen, the New York Fed Bank President acknowledged that inflation remains high but expressed confidence that it will start to decrease later in the year. Dr. Williams did not provide a clear indication of his stance on potential interest rate cuts but emphasized that monetary policy is currently restrictive and aimed at achieving a better balance in the economy. He suggested that interest rates may need to come down eventually based on data analysis, but the timing will depend on progress toward the Fed's goals. He noted that, despite earlier expectations of aggressive rate cuts, recent higher-than-expected inflation readings have shifted the landscape, with current pricing indicating possibly only one decrease, likely in November. Dr. Williams expects inflation to moderate in the second half of the year but stressed that it remains above the Fed's 2% target. He remarked that the Fed's current policy has kept its benchmark borrowing rate at its highest level in over 23 years, as it aims to maintain a strong labor market and bring inflation back to target. Dr. Williams expressed optimism about progress toward the Fed's goals over the past two years and reiterated the Fed's commitment to restoring price stability and fostering sustained economic prosperity.
On the subject of artificial intelligence, he noted that AI will either “maintain US productivity growth or stimulate it,” , humorously adding, “We are not allowed to use AI during our Fed meetings.” Concerning the current US presidential race, Dr. Williams recounted the original mandate and tradition of independence of the Federal Reserve. He commented, “We are focused on doing our job well. We are not interested in partisan or other issues. It is a model that works.”
AIAC Chairman L. M. Levie and his invited guests sat at the main luncheon table with John C. Williams and Economic Club of New York President and CEO Barbara M. Van Allen and Club Secretary, Edward Cox, who also serves as New York State Republican State Committee Chair, and Sara Eisen, Anchor at MSNBC. AIAC guests included the following individuals:
Hon. Wilbur Ross, former Secretary of Commerce, Senior Managing Director of Rothschild & Co., Chairman of W. L. Ross & Co., International Steel Group, International Textile Group, International Automotive Components Group, and International Coal Group.
Yves Andre Istel, Senior Advisor, Hanseatic Group, former Vice Chairman of Rothschild & Co., Chairman International of Wasserstein Perrella & Co., Co-Chairman of First Boston, Board Member of Lehman Brothers, Partner of Kuhn Loeb.
Dennis Flannery, CEO Stone Hill Associates LLP, Financial Advisor of the World Bank, the US Treasury and of the Trade Bank of Iraq, EVP of the Inter-American Development Bank, EVP, Iraq Country Head, Citicorp.
Dr. David Spergel, President of the Simons Foundation, former Professor of Astronomy of Princeton University, MacArthur Fellow, member of the NASA Advisory Council, and Distinguished Visiting Professor at the Institute for Advanced Study, Princeton.
L. M. Levie, AIAC Chairman and Member of the Economic Club of New York Centennial Society and Legacy Society, commented, “John Williams' insightful and balanced address to the Economic Club of New York showcased not only his deep understanding of economic dynamics but also his adeptness at communicating complex monetary policy matters with clarity and poise.” Mr. Levie continued, “Dr. Williams’ thoughtful analysis of current inflation and labor trends and the nuanced approach to the Federal Reserve's policy stance underscored his commitment to steering the economy toward stability and continued prosperity.” He added, “We are especially privileged to again host our distinguished friends, Wilbur Ross, Dennis Flannery and Yves Andre Istel and to welcome our new friend, Dr. David Spergel, at the Economic Club of New York.”
About AIAC
American Industrial Acquisition Corporation (AIAC) is a diversified industrial group with manufacturing and distribution sites in 24 countries in North America, Europe, Asia, and Australia. AIAC has acquired and grown subsidiaries, divisions, and affiliates of Boeing,
Siemens, Lockheed Martin, Northrop Grumman, Raytheon Technologies, Moog, Johnson Controls, Merck, Pfizer, Astellas, Visteon, Carlyle, Blackstone, Riverside, Ahlstrom, Groupe Suez, Groupe Rexel, and many other leading multinational corporations. AIAC Corporation manufacturing companies serve companies and governmental entities worldwide in all major sectors, including aviation, space, defense, automotive, truck, rail, marine, petrochemical, solar, nuclear, food, confectionary, beverage, civil engineering and infrastructure, commercial construction, mining, dredging, disaster relief, education, medical devices, and pharmaceuticals.
AIAC companies manufacture materials, components, assemblies, packaging, equipment, and finished products. In addition, AIAC companies are exclusive, authorized distributors of leading branded industrial and consumer products throughout Southeast Asia, Australia, and New Zealand.
Of note, AIAC purchased Boeing Canada in 2005, and has produced over 10,000 unique components for every Boeing jet plane ever since, reliably serving Boeing from manufacturing facilities in North America. A leader in ultra-high precision jet engine component manufacturing, AIAC companies also produce 2,200 fan blades and blisks for each jet engine produced by GE, Pratt & Whitney, Rolls Royce, and Honeywell.
AIAC companies actively support exploration into outer space, manufacturing critical components for launching and propelling spacecraft and satellites. AIAC customers in this sector include NASA, the European Space Agency, SpaceX, Blue Origin, and Boeing.
AIAC companies also produce the critical wire and cable for Tesla, GM, Ford, Chrysler-Fiat, Toyota, Nissan, Navistar, and Caterpillar. In connection with its paper manufacturing interests, AIAC controls and sustainably manages 22 million acres of Manitoba, Canada forestland, an area equivalent in size to the nation of Hungary. Its infrastructure group designs, manufactures and distributes street and highway illumination, signage, and traffic control products on four continents.
For further information, please see:
About AIAC Philanthropy
AIAC and the AIAC Foundation support a wide range of nonprofit, nonsectarian, bipartisan organizations which promote international conflict resolution, disaster relief, economic development, environmental sustainability, and exploration. The exploration-focused nonprofit organizations which they actively support include the Explorers Club, the National Geographic Society, the Royal Geographical Society, the American Museum of Natural History and the Hayden Planetarium, the Victoria & Albert Museum, the National Air and Space Museum, the National Space Society, and the United States Space Foundation.
AIAC’s other beneficiaries include the Appeal of the Nobel Peace Laureates Foundation Inc., the Asia Society, the Atlantic Council, the Bill and Melinda Gates Foundation - Gates Philanthropy Partners, the Bretton Woods Committee, the Carnegie Endowment for International Peace, the Carter Center, the Council on Foreign Relations, the Economic Club of New York, the Foreign Policy Association, the Institut Française des Relations Internationales, the International Committee of the Red Cross, the International Crisis Group, the International Rescue Committee, the Japan Society, the JFK School of Government of Harvard University, the Peterson Institute for International Economics, the Richardson Center for Global Engagement, the Royal Institute of International Affairs (Chatham House), the Sierra Club, and the Trilateral Commission.
For further information, please see:
https://www.aiac.com/our-values
About Avara Pharmaceutical Services
Avara Pharmaceutical Services is a global leader in contract manufacturing firm, specializing in providing high-quality solutions to pharmaceutical and biotechnology companies worldwide. With a steadfast commitment to innovation, quality, and client satisfaction, Avara operates expansive manufacturing campuses in Puerto Rico, Norman, Oklahoma, and Liscate, Italy. Serving 40 countries, Avara manufactures a diverse portfolio of critical prescription and non-prescription medications, encompassing both oral solid dose and injectable pharmaceuticals. A trusted partner to major multinational clients such as Aspen, Astellas, AbbVie, Bausch & Lomb, Genentech-Roche, Merck, Organon, Pfizer, and SK Life, Avara tailors its services to meet the unique needs of each client.
For further information, please see:
About the Economic Club of New York
Founded in 1907, the Economic Club of New York is the premier forum for discussion on a wide range of issues facing New York City, the United States, and the world. The Club welcomes preeminent thought leaders from across the globe and from the public and private sectors to speak on complex issues ranging from public policy and economic regulation to tech disruption. Nonpolitical, nonpartisan, and nonprofit, the Club promotes no agenda and takes no sides on issues, encouraging speakers and members to engage openly in thoughtful discussions.
The Economic Club comprises individual memberships, drawing from senior leadership of the many corporate and financial organizations based in the Metropolitan area. The Club has hosted speakers who are experts in their respective fields and who drive the conversations that shape the future world. Past speakers include leaders of Fortune Global 500 companies, and multiple U.S. presidents, including Woodrow Wilson, William H. Taft, Herbert Hoover, Dwight D. Eisenhower, John F. Kennedy, Richard Nixon, Ronald Reagan, and George H.W. Bush. International heads of state such as Winston Churchill, Mikhail Gorbachev, Indira Gandhi, Margaret Thatcher, and Yitzak Rabin have addressed the Club.
For further information, please see: www.econclubny.org
About John C. Williams
John C. Williams is the president and chief executive officer of the Federal Reserve Bank of New York. In that capacity, he serves as the Vice Chair and a permanent voting member of the Federal Open Market Committee. From 2011 to mid-June 2018, Dr. Williams was the President and Chief Executive Officer of the Federal Reserve Bank of San Francisco. Prior to that, he was the Executive Vice president and Director of Research at the San Francisco Fed, which he joined in 2002.
Dr. Williams began his career in 1994 as an Economist at the Board of Governors of the Federal Reserve System. In addition, he served as Senior Economist in the White House Council of Economic Advisers and as Lecturer at Stanford University’s Graduate School of Business. Dr. Williams holds a Ph.D. in economics from Stanford University, an M.S. degree from the London School of Economics, and an A.B. from the University of California at Berkeley.
His research focuses on monetary policy under uncertainty, business cycles, and innovation. He is a Research Associate at the Centre for Applied Macroeconomic Analysis and served as Managing Editor of the International Journal of Central Banking from 2011 to 2016. In addition, he has held Associate Editor positions at the American Economic Review and the Journal of Economic Dynamics and Control.
For further information, please see:
https://en.wikipedia.org/wiki/John_C._Williams_(economist)
Media Contact:
Isabel Carro-Toro, Vice President
American Industrial Acquisition Corporation
+34 689 295 827 (Spain)
+ 1 787 244 3175 (USA)
icarro-toro@aiac.com
