Fed’s Williams Says Interest Rates Are Well Positioned: Reuters

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessFed's Williams Says Interest Rates Are Well Positioned: ReutersFederal Reserve Bank of New York President John Williams said interest rates remain well positioned as inflation should ease during the second half of the year.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Federal Reserve Bank of New York President John Williams said interest rates remain well positioned as inflation should ease during the second half of the year.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account“My forecast personally is for inflation to come down in ⁠the second half of this year and come down further next year,” Williams said in an interview with Reuters published on Monday. “I think monetary policy currently is well positioned in where ​we are today to support that disinflationary path,” he added. If inflation does not behave as expected, the New York Fed chief added, then the central bank would need to act. “If the economy is not on a trajectory that will bring inflation back down to 2% and we would, in my view there would be, it would absolutely be appropriate to act to get us on a trajectory that does bring inflation back to 2%,” he said. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe Fed left interest rates unchanged at their 3.5% to 3.75% range last week. Three officials dissented in favor of a quarter-point hike arguing staying put now would risk the need for more aggressive tightening in the future, as inflation remains persistent. Inflation measures are giving policymakers some respite. The Fed’s preferred gauge of price pressures, the personal consumption expenditures index, fell 0.1% in June. A prior report of inflation also showed a similar decline, as gasoline prices declined. Oil prices fell again in recent days with news of a resumption of peace negotiations between the US and Iran. Williams added that underlying measures of inflation excluding energy and food prices should ease, as the conflict in the Middle East ceases to add price pressures. In that scenario, the Fed could deliver on its 2% inflation goal by 2028. “I am quite honestly focused quite a bit on what are we seeing in the core inflation ​data over the next several months, and is that consistent with a kind of a run rate of inflation moving towards 2% and really on a disinflationary path consistent ​with us achieving our 2% inflation goal on a sustained basis by 2028,” Williams said.“But I don’t anticipate, at least based on what’s happening so far in my base case, that we’re going to see continued inflationary push in the second half of the year or the next year from the from the conflict in the Middle East,” he said. “But that’s something that obviously could change depending on circumstances.”This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.