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Fed's Williams expects inflation to ease, says Fed will act if it doesn't
Williams said tariffs have mostly passed through to prices and expects disinflation to continue as energy pressures ease, keeping the Fed ready to act.
- New York President John Williams said on Monday that inflation should ease in the second half of this year, though the central bank will raise rates if progress toward its 2% target stalls.
- Last week, the Federal Open Market Committee left interest rates unchanged at 3.5% to 3.75%, though three Fed officials dissented to argue for an immediate rate hike to address persistent inflation.
- Cleveland Fed President Beth Hammack and Minneapolis counterpart Neel Kashkari joined Dallas Fed Lorie Logan in calling for action, citing that "inflation has remained stubbornly above 2% for more than five years."
- Inflation rose 3.7% year-over-year in June, while the Fed's preferred gauge, the PCE index, fell 0.1% in the same month, offering policymakers some respite from recent price pressures.
- Williams noted that while some inflationary drivers like oil prices may diminish, uncertainty persists regarding the Middle East conflict and volatile sectors that have recently influenced the economy.
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14 Articles
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The president of the Federal Reserve (Fed) New York District, John Williams, said he remains optimistic about the fact that inflationary pressures are on a gradual downward path, but stressed that if this does not happen, the United States central bank will not hesitate to respond with interest rate increases to ensure that price pressures return to the target.
·Rio de Janeiro, Brazil
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The Federal Reserve keeps interest rates stable. US Federal Reserve banker Williams sees the Fed "well set up", but also considers monetary policy measures.
·Düsseldorf, Germany
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Coverage Details
Total News Sources14
Leaning Left0Leaning Right5Center5Last UpdatedBias Distribution50% Center, 50% Right
Bias Distribution
- 50% of the sources are Center, 50% of the sources lean Right
50% Right
C 50%
R 50%
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