(Reuters] – The U.S. Federal Reserve has set a goal to reduce inflation without destabilizing its economy. This is despite the fact that it faces a lot of uncertainty due to price pressures resulting from wars in Ukraine and COVID, New York Fed President John Williams stated on Tuesday.

Williams spoke at an economics conference held by Germany’s central banking in Eltville am Rhein. Williams explained that “the ongoing pandemic of war in Ukraine brings a tremendous amount complexity and uncertainty.” We will have to be data-dependent and adapt our policies as the circumstances dictate.

Williams said that while the Fed is trying to reduce inflation to 2.2%, it was not impossible to maintain a strong economy. The Fed will be moving to normalize interest rates quickly.

Last week the central bank increased its benchmark overnight lending rates by half a point to a range of 0.75%-1%. It has also indicated similar-sized rises at its June and July policy meetings.

Fed policymakers have taken a stronger stance to combat inflation, which is at its highest level in 40 years. Inflation pressures have continued even though the economy has reopened and was once considered temporary.

Russia’s invasion in Ukraine has pushed up energy and food prices. China has been tightening its grip on COVID cases, which has led to more disruptions in the supply chain of goods.

Williams expressed optimism about the Fed’s mission and said that it would reduce demand in the two most unbalanced parts of the economy, durable goods, housing, as well as cool the heat of a hot job market.

Williams indicated that the Fed’s main inflation gauge core personal consumption expenditures prices index (at almost 4%) at the close of 2018. This is down from 5.2% currently and will fall to about 2.5% by 2023. On Wednesday, a U.S. government report is expected to indicate that consumer price inflation fell slightly in April. This would signal inflation has reached its peak.

New York Fed chief said that he believed the causes of supply chain problems would begin to disappear so that central bank’s rebalancing could be done through increased supply, rather than by aggressive rate moves.