Inflation and Interest Rate Assessment from New York Fed President John Williams
Emphasizing that recent data is encouraging, John Williams stated that the inflation trend is on a gradual downward trajectory.
New York Fed President John Williams stated that recent economic data is encouraging and expressed his support for the decision to keep interest rates steady at the July meeting.
Downward Trend in Inflation
New York Fed President John Williams stated that recently released economic data has been encouraging. Emphasizing that the core inflation trend is gradually moving downwards, Williams noted that this is a positive development.
Sources of Inflationary Pressures
Williams pointed to customs duties and high energy prices triggered by tensions in the Middle East as the primary sources of inflationary pressures. He stated that the initial wave effects of the taxes on prices are now behind us.
Service Sector and Energy
Stating that upward pressures persist in services inflation, Williams underlined that the increase in energy prices has not yet transformed into widespread secondary effects.
Upcoming Meeting and Data
Stating that interest rates were at a good point at the July FOMC meeting, Williams announced that they will meticulously review new data until the meeting to be held in Washington on September 15-16.