New York Fed President says inflation impact from tariffs and energy shocks should ease soon, with core inflation near 3%.
Federal Reserve Bank of New York President John Williams stated inflation pressures from tariffs and energy shocks are likely to peak in the next few months. Core inflation remains around 3%, while headline inflation hovers near 4% in the near term, according to his remarks.
Williams noted the U.S. economy remains solid, with a resilient labor market and stable long-term inflation expectations. However, he highlighted risks from supply chain disruptions and geopolitical conflicts, including the Middle East war, which have temporarily boosted energy costs and inflation.
The comments had little immediate effect on markets, with the USD Index holding steady at 99.20 during the session.