Inflation should be elevated through remainder of year
Policy is in exactly the right place, there is no need to raise or lower rates
I'm not that worried about persistent impacts on inflation so far
Higher energy prices are driving up costs and inflation
Economy should growth around 2%, job market has stabilized
The job market is healthy
Inflation is up 'quite a bit'
I would expect inflation to peak in the next few months
Inflation should be elevated through remainder of year
Inflation is elevated in goods sector and energy related forces
Inflation also elevated in tech due to AI
A lot of inflation is due to tariffs and inflation and computer chips
Hopefully energy prices will stabilize
We will have to wait and see what happens with the latest tariffs
Upside risks to inflation have increased
We are not far from a neutral rate
Expects inflation to be lower next year
These comments are not as hawkish as I would have expected. He's not in any rush to hike or do anything to slow down inflation, which is well-above target and accelerating. This strengthens the argument that the Fed is falling behind the curve.
The comments fit with his recent public remarks, where he has argued that tariffs and energy prices are doing much of the work in keeping inflation above the Fed’s 2% target. At the same time, Williams has emphasized that inflation expectations remain anchored, the labor market is not adding meaningful inflation pressure and there are limited signs so far of persistent second-round effects.
On growth, Williams struck a relatively steady tone, saying the economy should expand around 2% and that the job market remains healthy. That leaves the Fed in wait-and-see mode: inflation is too high for comfort, but Williams does not yet sound convinced that the latest price pressures require a more aggressive policy response. That will be something to watch going forward.
