Fed's Williams: "Unquestionably too-high" inflation may soon subside
SPY•Williams says inflation may have peaked
While inflation is "unquestionably too high," there are reasons to believe it may have crested and should soon start subsiding, and U.S. monetary policy is well positioned to guide inflation back to the Federal Reserve's target, New York Fed President John Williams said on Wednesday.
"Inflation is unquestionably too high at about 4%, well above the (Federal Open Market Committee)’s longer-run goal of 2%," Williams said in remarks prepared for an event in New York.
Williams pointed to higher tariffs, supply chain disruptions and energy price spikes arising from the Middle East war and robust business investment in artificial intelligence technologies as the main forces pushing inflation higher in the last year.
"These three factors together have driven inflation over the past year," Williams said. "But there are encouraging reasons to expect that inflation has peaked and should edge down in coming quarters."
