Federal Reserve Bank of New York President signals caution on inflation despite recent progress toward the 2% target.
Federal Reserve Bank of New York President John Williams refrained from declaring inflation under control, citing persistent above-target price pressures. His comments reflect ongoing uncertainty over the timing of potential rate cuts amid mixed economic signals.
Recent inflation data showed modest improvement, but core PCE remains above the Fed’s 2% goal. Markets had priced in a more dovish pivot following softer CPI prints, though policymakers continue to emphasize data dependency.
The remarks come as investors weigh the Fed’s next move against a backdrop of resilient consumer spending and geopolitical risks, including a $29bn cost tied to Middle East conflicts.