New York Fed's Williams says US inflation has peaked, backs current rates
New York Federal Reserve President John Williams said the latest surge in US inflation has likely peaked, citing five reasons behind the assessment. He added that current interest rates are well positioned to guide inflation back toward the Fed's target.
New York Federal Reserve President John Williams said he believes the recent surge in US inflation has run its course, laying out five distinct reasons for the assessment. Among them, he cited easing energy costs and improvements in supply chains that had earlier pushed prices higher.
Williams said current interest rates are well positioned to guide inflation back toward the Fed's 2% target. His remarks offer a cautiously optimistic reading even as some policymakers within the central bank have pushed for rate cuts in recent months.
The comments came as wholesale prices unexpectedly declined in June, helped by a drop in gasoline costs. Markets read Williams's remarks as a signal that the Fed may hold rates steady in the near term rather than move quickly in either direction.
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