Fed's Williams Sees No Rate Change Need as Inflation Stays Elevated Through 2026
Updated
Updated · investinglive.com · Jun 3
Fed's Williams Sees No Rate Change Need as Inflation Stays Elevated Through 2026
3 articles · Updated · investinglive.com · Jun 3
Summary
Williams said Fed policy is “exactly in the right place,” with no need to raise or cut rates even as inflation has risen “quite a bit” and should stay elevated through the rest of the year.
Higher energy prices, tariffs and chip-related costs are driving much of the price pressure, he said, adding that he is not worried about persistent second-round inflation effects and expects inflation to peak in the next few months.
Around 2% growth and a healthy, stabilized labor market underpin that wait-and-see stance, with Williams saying the economy is not generating meaningful new inflation pressure from jobs.
Upside inflation risks have increased, but Williams said the Fed is not far from a neutral rate and still expects inflation to be lower next year.