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Fed President Williams says inflation confidence remains intact

Williams told Reuters he expects inflation pressures to gradually ease, while keeping the option to adjust policy if inflation is not on track for the 2% target.

Reported · Written up by our desk · Central Banks

New York Fed President John Williams said he remains confident that inflation will return to the Federal Reserve’s 2% target, reinforcing that the central bank is committed to bringing price growth back to target, according to remarks carried by FXStreet and first shared in an interview with Reuters.

Williams said Fed rate policy is “well positioned” to achieve the goal, and he reiterated that the Fed would act if inflation is not on track to reach the target. He also said he sees uncertainty around the impact of the Middle East war, but expects any inflation effect from the conflict to cool.

The remarks also emphasized that the Fed is aware of how markets are pricing policy, but it is not obliged to simply ratify those expectations, noting that market pricing offers useful information rather than a binding constraint.

FXStreet said a slight positive move was seen in the US dollar after the comments, with the US Dollar Index trading marginally higher to near 99.85 at the time of publication. It also cited an FXS Speechtracker score for the remarks that suggests continuity in policy tone rather than escalation.

Latest closeDollar index 99.80 ▼0.2%

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