Federal Reserve Bank of New York president John Williams allegedly said Wednesday that inflation is still at problematic levels and the central bank will use its tools to curb price increases.

“Inflation is still too high and we will use our monetary policy tools to restore price stability,” Williams said in a speech to a gathering of New York University Money Marketeers, according to a Reuters report.

Williams also noted that stress in the banking sector appears to be cooling. “Conditions in the banking sector have stabilized and the banking system is solid and resilient,” he said, adding that the problems are likely to make credit more expensive and harder to get.

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“It is too early to assess the magnitude and duration of this impact and I will be closely monitoring developments in credit conditions and their potential impact on the economy,” Williams said.

The Fed official explained Banks’ massive emergency loans from the central bank, which totaled $323 billion across three programs a week ago, are not a problem, and the top institution is happy to see banks asking for liquidity when needed.

Williams also hinted that he does not expect a recession, contrary to the view of Fed officials revealed in the March FOMC meeting minutes.

Notes from Goolsbee: Federal Reserve Bank of Chicago president Austan Goolsbee said in an interview on NPR’s marketplace that he is still waiting to see if the aftermath of the banking crisis could slow down the economy more than expected.

“Everyone is forecasting some slowdown in growth for the second half of the year. How intense that will be depends a lot on the financial part,” he said. after to a Bloomberg report citing NPR.

“The labor market is by far the strongest part of the economy. It’s still reaching truly unprecedented numbers,” Goolsbee said. “Inflation – there’s been some improvement, but in a way that’s the worst thing about…