New York Fed President expects inflation to decline to 3.25% by year-end, reaching 2 percent target by 2028 without further rate hikes.
New York Federal Reserve President John Williams stated inflation has likely peaked, citing easing pressures from oil prices, tariffs, and technology spending. He expects inflation to fall to around 3.25% by the end of 2024, continuing downward to the Fed’s 2 percent goal by 2028.
Williams noted that recent inflation spikes were driven by geopolitical tensions, tariffs, and AI-related investments, but these factors are now stabilizing. He dismissed concerns about labor market contributions to inflation and indicated no need for additional rate hikes.
The remarks suggest the Fed may hold rates steady despite market expectations for future increases, reflecting confidence in a gradual decline in price pressures.