Fed's Williams Calls Policy Slightly Restrictive, Sees War and Tariff Price Pressures Peaking in Months
Federal Reserve official John Williams said the Middle East war is boosting inflation through higher energy costs and weighing on consumer spending, but he expects the effect to be short term. He said price pressures from the conflict and from tariffs are likely to peak in the next few months, and described monetary policy as right where the Fed wants it: well positioned and slightly restrictive.
Williams said the path for monetary policy depends on the data, outlook and risks. Persistently high inflation would call for higher rates, he said, but that is not where we are today; near-term inflation expectations are elevated while longer-term expectations remain stable.
From the sources (12 posts)
@firstsquawkFED'S WILLIAMS: MIDDLE EAST WAR IMPACTS CONSUMER SPENDING AMID HIGHER ENERGY COSTS
@financialjuiceFed's Williams: The Middle East war is boosting inflation, the energy surge should have a short-term impact.
@deitaoneFED'S WILLIAMS: HIT TO INFALTION LIKELY TO PEAK IN NEXT FEW MONTHS
@financialjuiceFed's Williams: The hit to inflation is likely to peak in the next few months. Tariff impacts should peak in the next few months.
@financialjuiceFed's Williams: Monetary policy needs to be data dependent.
@financialjuiceFed's Williams: I see elevated near-term inflation expectations, but long-term is stable.
@financialjuiceFed's Williams: The US labor market is pretty balanced.
@firstsquawkWILLIAMS: FED MUST BE CLEAR IT IS GETTING INFLATION TO 2%
@firstsquawkWILLIAMS: PATH FOR MONETARY POLICY DEPENDS ON DATA, OUTLOOK AND RISKS
@financialjuiceFed's Williams: Monetary policy is right where we want it to be, it is well-positioned.
@financialjuiceFed's Williams: The Fed's monetary policy is slightly restrictive.
@financialjuiceFed's Williams: Persistently high inflation would call for higher rates, that is not where we are today.